Gray Areas In Tax Exemption Law

Numismatic News- Earlier this year, Ohio Governor Kasich signed into law Senate Bill 172. This law adds provision 54 in Section 1 to establish a sales and use tax exemption on the retail sales of "investment metal bullion" and "investment coins," which becomes effective as of Jan. 1, 2016.

While I am neither a legislator nor an attorney, Ohio citizens need to understand what kinds of merchandise qualify for this sales and use tax exemption. I hope the following discussion sheds some light on the question.

As stated in the legislation, "Investment metal bullion" means any bullion described in section 408(m)(3)(B) of the Internal Revenue Code. A search of the Internal Revenue Code for that citation finds this language: "Any gold, silver, platinum, or palladium bullion of a fineness equal to or exceeding the minimum fineness that a contract market (as described in section 7 of the Commodity Exchange Act, 7 U.S.C. 7) requires for metals which may be delivered in satisfaction of a regulated futures contract."

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