Magnolia State Passes Sales-Tax Exemption Bill

The Mississippi legislature has passed a sales- and use-tax exemption on the sales of coins, currency, and precious-metals bullion, which was signed by Governor Tate Reeves on April 19. The law will take effect July 1, 2023.

Senator Juan Barnett sponsored Senate Bill 2862, which passed out of the Senate by a vote of 52–0, and the House by a vote of 115–0. The portion of the law relevant to the numismatic and precious-metals bullion communities is in Section 1:

(aaa) Sales of coins, currency, and bullion. For the purposes of this paragraph (aaa), the following words and phrases shall have the meanings ascribed in this paragraph (aaa) unless the context clearly indicates otherwise:

(i) “Bullion” means a bar, ingot, or coin:

1. Manufactured, in whole or in part, of gold, silver, platinum, or palladium;
2. That was or is used solely as a medium of exchange, security, or commodity by any state, the United States Government, or a foreign nation; and
3. Sold based on the intrinsic value of the bar, ingot, or coin as a precious metal or collectible item rather than its form or representative value as a medium of exchange.

(ii) “Coin or currency” means a coin or currency:

1. Manufactured, in whole or in part, of gold, silver, other metal, or paper;
2. That was or is used solely as a medium of exchange, security, or commodity by any state, the United States Government, or a foreign nation; and
3. Sold based on the intrinsic value of the coin or currency as a precious metal or collectible item rather than its form or representative value as a medium of exchange.

“Coin or currency” does not include a coin or currency that has been incorporated into jewelry.

Since 2021, bills have been routinely introduced to exempt sales of coins and precious-metals bullion from Mississippi’s sales and use tax. This year, an unprecedented number of bills seeking this exemption were introduced in both the House and Senate. Two of those bills, House Bill 1661, and Senate Bill 2019, passed their respective chambers, were transmitted to the opposite chamber, and referred to committees for consideration. Unfortunately, there was no further action by the committees on either bill, so they died in committee.

However, House amendments to SB 2862 were rejected by the Senate, and the bill was sent to a conference committee, which reached a compromise on the text; a report was filed and adopted by both chambers. The bill was enrolled and sent to the governor, where it was signed.

Norman Carnovale (The Coin Shop Biloxi) spearheaded the local campaign’s efforts, supported by the National Coin & Bullion Association and others. Mississippi now joins 41 other states that have complete or partial sales-tax exemptions on the retail sales of coins, currency, and precious-metals bullion. Of those states, five (Alaska, Delaware, Montana, New Hampshire, and Oregon) have no state sales tax at all, while the other 36 states have enacted legislation and adopted regulations to exempt such merchandise. That leaves only eight states and the District of Columbia that still charge sales taxes on the retail sales of coins, currency, and precious-metals bullion.