New Jersey Governor Enacts Tax Exemption For Investment Bullion And Coins

New Jersey governor Philip D. Murphy has signed into law a pivotal piece of legislation, S721, which exempts sales of investment metal bullion and certain investment coins from sales and use tax. This success marks the culmination of a dedicated campaign led by the National Coin & Bullion Association (NCBA) and its coalition partners.

Investment metal bullion refers to precious metals like refined gold, silver, platinum, and palladium, where their value is based solely on their metal content rather than their form. It excludes metals used in industrial, artistic, or other specific applications. Investment coin includes numismatic coins made from metals such as gold, silver, platinum, or even non-precious metals, with a market value of at least $1,000. It does not include jewelry, works of art, or commemorative medallions.

The new law, which goes into effect on January 1, 2025, includes a provision that exempts investment coins with a fair market value of not less than $1,000 from sales tax. This threshold was included to address concerns from the Assembly Appropriations Committee about the potential impact on sales-tax revenue after much negotiation and careful consideration.

David Crenshaw, executive director of NCBA, praised the legislation, saying, “The passage of S721 demonstrates the positive impact of sustained advocacy and collaboration. This law benefits both consumers and the industry by removing unnecessary financial barriers, while still addressing the state’s revenue concerns.”

The success of this legislative push is owed to the tireless efforts of several key figures, including NCBA industry issues advisor Patrick Heller, who played an instrumental role in addressing concerns from the state’s Office of Legislative Services, effectively refuting flawed fiscal assumptions and providing compelling testimony. Additionally, lobbyists Patrick Torpey and Dan Smith of 1868 Public Affairs in Trenton, New Jersey, were crucial in navigating the bill through the legislative process and securing vital meetings with key decision-makers, including the governor’s assistant counsel. The legislation’s smooth passage is the result of the strategic collaborative approach taken by the NCBA and its partners, which highlights the importance of proactive engagement with lawmakers and stakeholders.

With the governor’s signature, New Jersey now joins a growing list of states offering similar tax exemptions, fostering a more favorable environment for investment in precious metals.