California Precious Metals Tax Information
The state of California requires the collection of sales taxes on certain products sold by APMEX and delivered to a California address.
Please note: The below is not a comprehensive description of sales tax laws and requirements in the state of California. It is only intended to provide the reader with a brief overview of those sales tax laws and requirements currently in effect in the state of California that relate to the reader’s transactions with APMEX.
What Precious Metals Are Taxed?
Taxes must be collected on (1) nonmonetized bullion made from platinum, palladium or copper; (2) monetized bullion, nonmonetized gold or silver bullion, or numismatic coins if the total amount of a single sales transaction is less than $1,500; (3) accessory items; and (4) processed items. All other products sold by APMEX are exempt from these taxes.
Taxable Products in California
The following definitions apply to products on which these taxes must be collected in California:
- Nonmonetized Bullion. Bullion which has been smelted or refined and has a value dependent primarily upon its precious metal content and not upon its form.
- Monetized Bullion. Coins or other forms of money manufactured of gold, silver, or other metal and heretofore, now, or hereafter used as a medium of exchange under the laws of California, the United States, or any foreign nation. The medium of exchange must have had a legal status equivalent to legal tender.
- Numismatic Coins. Coins which have an external value above and beyond the base value of the underlying precious metal, due to the item’s rarity, condition, age, or other external factor.
- Single Sales Transaction. Determined per invoice, not on a line-item basis.
- Accessory Items. Items such as holders, tubes or coin flips.
- Processed Items. Precious Metals that have been processed by third parties into items valued on more than their Precious Metal content, such as jewelry, statues or colorized coins.
How Does California Calculate Precious Metals Taxes?
Taxes in California are calculated at checkout on the APMEX website based on (1) the taxability of products sold by APMEX in California set forth above and (2) the specific tax rates established by the taxing jurisdiction of the delivery address in California. APMEX began collecting taxes in California in April 2019.