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Do I Need to Collect Sales Taxes on Silver Sales in California?

One Silver American Eagle rests against three stacks of American Silver Eagles.

Is Bullion Subject to a State Sales Tax in California?

A sales tax is imposed on retail sales in California, but bullion product sales exceeding $1500 are exempt from the state sales tax. This includes bullion coins, bars, and rare coins, and covers both individuals and businesses.

Bullion sales under $1500 are subject to state and local taxes, which vary from municipality to municipality. This is based on section 1526 of the California Sales and Use Tax Regulation.

It is essential to know that this exemption does not include paper currency, no matter how rare.

Restrictions and Specifications Related to the Bullion Tax Exemption

California has several exceptions to the exemption of sales tax on bullion.

State sales taxes have to be collected on:

  1. Nonmonetized bullion made from platinum, palladium or copper.
  2. Monetized bullion, nonmonetized gold and silver bullion, and numismatic coins if the sum of a single transaction is less than $1500.
  3. Accessory items like tubes and holders.
  4. Processed items, such as jewelry and statues.
  5. Bullion product which is made into coins that are not investment-grade.
  6. Bullion purchased in a state other than California may be subject to a use tax.

Capital Gains Tax Rates are Federal

It is worth noting that sales of bullion products in California may still be subject to federal tax laws like capital gains tax. The maximum Capital Gains tax rate is 28%.

It’s also important to note that these exceptions may vary based on local laws. We recommended consulting with a tax professional for specific guidance on both state and federal taxes.

Find more detailed California precious metals tax information.

Quick Guides to Investing

Step 1:

Why Buy Physical Gold and Silver?

If you are concerned about the volatility of the stock market, you’re not alone. The extreme highs and lows of the stock market often lead investors towards safe-haven assets, like bullion. Historically, the Precious Metals market has an inverse relationship with the stock market, meaning that when stocks are up, bullion is down and vice versa.

Step 2:

How Much Should I Buy?

This question is one of the most important for investors to answer. After all, experts suggest limits on how much of any types of investments should go into a portfolio. After deciding to purchase and own Precious Metals and considering how much money to allocate, one can then think about how much and what to buy at any point in time.

Step 3:

What Precious Metals Should I Buy?

With the frequent changes in the market and countless Precious Metal products available, choosing investments can be difficult. Some want Gold or Silver coins, rounds or bars while others want products that are valuable because of their design, mintage or other collectible qualities. Also, collectors may shop for unique sets and individual pieces for their collections.

Step 4:

How To Buy Gold and Silver?

After considering why, how much, and what Precious Metals products to buy, an investor’s next step is how to buy them. Gold and Silver are different than your typical investments. While buying Precious Metals can be important for investing, it can also be a fun shopping experience. One guideline for buying Precious Metals is to keep the buying process as simple as possible. Plus, one should only buy them from respectable retailers with longstanding credibility for quality, like APMEX.

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