Coin Dealers Win Stunning Reversal on Gold and Silver Tax
Maryland has reversed one of the most controversial tax changes to hit the state’s coin and bullion market.
On May 26, 2026, Governor Wes Moore approved legislation that restores Maryland’s sales tax exemption for qualifying purchases of precious metal bullion and coins. The change takes effect July 1, 2026. Maryland General Assembly records list House Bill 500 as Chapter 729 and Senate Bill 309 as Chapter 730.
The new law ends the Baltimore Convention Center restriction that dealers and collectors criticized throughout the past year. Under the 2025 tax change, Maryland only exempted qualifying precious metal bullion or coin sales over $1,000 when the sale occurred at the Baltimore Convention Center. Before that change, Maryland exempted qualifying purchases over $1,000 statewide.
A Tax Fight That Hit Maryland Coin Dealers Hard
The 2025 tax change stunned many Maryland coin and bullion businesses. It also put Maryland out of step with most states that have moved away from taxing gold and silver purchases.
Dealers argued that the tax pushed customers into nearby tax-free markets. Pennsylvania, Delaware, and West Virginia became easy alternatives for many buyers. As a result, some Maryland businesses reported losses that reached into the hundreds of thousands of dollars, according to the Sound Money Defense League.
Brett Stelfox, owner of Golden Eagle Coins in Laurel, Maryland, told lawmakers that his business felt the impact almost immediately. He reported a 72% drop in showroom traffic after the tax took effect. Stelfox also said Maryland dealers formed the Sound Money Association of Maryland to support SB 309 and HB 500 because “our business depended on it.”
Senate Bill 309 and House Bill 500 Restore the Old Exemption
Senator J.B. Jennings (R-7) sponsored SB 309. Delegate Wayne Hartman (R-38C) sponsored HB 500. Together, the bills restore Maryland’s long-running exemption for qualifying gold and silver coins, bars, and rounds.
The Sound Money Defense League helped secure the introduction of the bills. It also testified at hearings and mobilized grassroots support. Jennings credited testimony from business owners and sound-money advocates for moving the legislature to act. Hartman said the bill aimed to help Maryland businesses that sell precious metal bullion and coins.
Why the Repeal Matters to Collectors and Bullion Buyers
For coin dealers, the issue centered on competition. Buyers can cross state lines or buy elsewhere when one state adds a tax to precious metals. That makes local shops less competitive.
For collectors and bullion buyers, the issue also touched savings and investment. Gold and silver often function as stores of value. Maryland does not tax purchases of stocks, bonds, ETFs, currencies, and other financial instruments. Sound-money advocates argued that bullion and monetary coins deserve similar treatment.
Supporters also argued that sales taxes belong on consumer goods, not on assets bought for resale or long-term preservation. They pointed to past state-level studies and dealer testimony that suggest precious metals taxes can drive conventions, customers, and related business activity out of state.
The $1,000 Threshold Still Remains
The repeal did not go as far as some advocates wanted.
SB 309 and HB 500 restored Maryland’s pre-2025 exemption. However, that older exemption still includes the $1,000 purchase threshold. Therefore, small buyers who purchase less than $1,000 in qualifying precious metals still face tax exposure.
The Sound Money Defense League calls this a “poor tax” because it affects smaller savers more than larger buyers. According to the group, only California, Massachusetts, and New York maintain similar threshold provisions.
Maryland Rejoins the National Trend
Matthew Cortez, policy associate for the Sound Money Defense League, testified that the national trend now favors removing taxes on precious metals.
According to the organization, 45 states now fully or partially exempt precious metals from sales tax. Recent states in that trend include Kentucky, New Jersey, Florida, and Connecticut. The group lists Maine, Washington, New Mexico, Vermont, Hawaii, and the District of Columbia among the primary jurisdictions that still tax precious metals purchases.
Maryland’s Sound Money Index score should rise after the repeal. The state had fallen to 47th place after the 2025 tax change, according to the Sound Money Defense League.
Sound Money Push Continues in Other States
The Maryland win comes during a busy 2026 legislative season for the Sound Money Defense League. The group says it has supported successful sound-money measures in Maryland, Idaho, Wisconsin, Georgia, Kansas, Indiana, Kentucky, Tennessee, Mississippi, Colorado, Nebraska, West Virginia, and South Dakota.
For Maryland dealers, however, the immediate story is local. A tax that threatened coin shops, bullion sellers, and their customers will now give way to the state’s old exemption structure.
That does not end the debate. Still, it marks a major reversal for a state that briefly turned a routine gold or silver purchase into a political flashpoint.
I do find it ridiculous to tax precious metals when they are a form of investment. The threshold is adequately named the “poor tax” as the majority of everyday people will only be buying in small chunks or silver making it difficult to ever go above the $1000 limit to avoid taxes. Politicians love taxing whatever they can get away with and it shows through actions like these that fail spectacularly.
Another example of the billionaires going tax free while the common folk pay the bills. And don’t forget, we are supposed to thank our elected politicians for their benevolence.