ICTA member Dave Miholer (Executive Coin Company, Stow, Ohio) brought to our attention in May that the Ohio 2020–2021 budget eliminated the sales-tax exemption on the purchases of investment metal bullion and investment coins. The budget plan also directs the state to begin collecting sales taxes on interstate purchases, due to the requirements of South Dakota vs. Wayfair.
Shortly afterward the budget’s language eliminating the exemption was removed. Lobbyist Neil Clark closely monitored the budget’s bill (HB 166) in case the language was restored before the bill went to the Senate floor for a vote. The Senate passed their version of the bill on June 20, 2019. However, the House refused to concur in the Senate amendments, so the bill went to a Conference Committee, where differences were resolved. It passed both houses on July 17, 2019.
We learned late that night from lobbyist Clark that the budget now included language that eliminated the exemption and that it was on the way to Governor Mike DeWine to be signed. The Ohio dealer community was immediately alerted and asked to call Governor DeWine’s office to urge him to line-item veto this language and protect the exemption. Unfortunately, Governor DeWine opted not to veto the language before signing the bill into law Thursday, July 18, 2019.
On behalf of Miholer, thank you to everyone who made telephone calls, wrote legislators, testified before legislative committees, and financially supported the efforts to stop the repeal of the Ohio sales-tax exemption on the purchases of investment metal bullion and investment coins.
“The state’s current political climate was just not favorable toward existing tax breaks that generally favored businesses,” said Miholer. In other words, the repeal of this exemption and other tax breaks would supposedly underwrite a huge state tax cut.
The sales tax becomes effective on October 1, 2019.
“We may be down, but we’re not out,” says Miholer. “We don’t know right now, but we will regroup and start again a campaign to get our exemption back.”
For more information, please contact Miholer by calling (330) 686-1100 or emailing firstname.lastname@example.org.
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About Industry Council for Tangible Assets (ICTA)
Industry Council for Tangible Assets (ICTA) is a 501(c)(6) tax-exempt trade association that represents the rare-coin, currency, and precious-metals communities. ICTA is supported solely by dues and donations. To join and/or learn more about ICTA, please visit our website, ictaonline.org.