Ohio Budget Bill Reinstates Investment Bullion and Coin Sales Tax Exemption

The Ohio 2022–2023 budget reinstates the sales tax exemption for the purchases of investment metal bullion and investment coins that was eliminated in the previous budget. Two bills, House Bill 268 and House Bill 110, had the possibility of reinstating the exemption, with the budget bill, HB110, succeeding.

The Ohio Senate Finance Committee and Ohio House Ways and Means Committee met May 18, 2021, to discuss HB268: Exempt sale of investment metal bullion and coins from sales tax. National Coin & Bullion Association (NCBA) submitted written testimony in support of the bill to both committees. NCBA board member and sales-tax exemption expert, Pat Heller (Liberty Coin Service), testified in-person at the Finance Committee meeting, as did several local coin-business owners. The Ways and Means Committee voted 11 to 6 in favor of the bill’s passage, and it was returned to the House but set aside in the interest of passing the budget bill.

The state’s budget (HB 110: Creates appropriations for FY 2022–2023) passed both the House and the Senate. On June 15, the Senate insisted on amendments and asked for a committee of conference. The Senate’s version of the bill would use the following language to amend Ohio Revised Code Section 5739.02: Levy of sales tax, purpose, rate, exemptions:

(57) Sales of investment metal bullion and investment coins. “Investment metal bullion” means any bullion described in section 408(m)(3)(B) of the Internal Revenue Code, regardless of whether that bullion is in the physical possession of a trustee. “Investment coin” means any coin composed primarily of gold, silver, platinum, or palladium.

Based on this language, the exemption is specifically for bullion coins and bullion—gold, silver, platinum, and palladium. Collectible coins made of copper and nickel and paper currency are not exempt, though collectible coins made primarily of gold and silver (such as dimes, quarters, and dollars minted before 1965 and any higher-value gold coins) would qualify.

The Ohio Senate and House agreed to the conference committee’s report, passing HB 110 on June 28, 2021. Shortly after midnight July 1, 2021, Governor Mike DeWine signed the bill into law. DeWine did use the line-item veto on 14 items, but fortunately, the exemption was not one of them.

“Ohio now rejoins the 39 other states with a sales tax exemption,” said NCBA executive director David Crenshaw. “The dealer and collector communities, in conjunction with NCBA, put a tremendous amount of hard work into the grassroots campaign. We especially want thank Dave Miholer (The Executive Coin Company), Bradley Karoleff (Coins Plus), and Andrew Reames (Crossroads Coins) for their continued local help to reinstate this exemption.”

The exemption’s effective date is October 1, 2021.
 

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