Kentucky Legislature’s Override of Governor’s Veto, Securing Tax Exemption for Currency and Bullion

The Kentucky General Assembly has overridden Governor Andy Beshear’s veto of House Bill 2, officially enacting a sales-tax exemption for currency, bullion, and coins.

Introduced on January 10, 2025, HB 2 passed the House with a 76–17 vote and the Senate with a 30–6 vote earlier this year. The veto override, finalized on March 27 with an 80-19 vote in the House and an 31-6 vote in the Senate, marks the successful conclusion of a year-long effort to protect Kentucky taxpayers.

HB 2 reinforces a tax exemption initially included in 2024’s revenue bill, which Governor Beshear had attempted to veto. Despite the attorney general declaring that veto invalid and the exemption being codified effective August 1, 2024, the governor directed the Department of Revenue to continue collecting sales taxes on these transactions, prompting the need for this new, clarifying legislation.

Now law, HB 2 delivers

• Permanent Tax Relief: Sales of currency, coins, and bullion transactions will stay free from sales and use taxes.
• Taxpayer Restitution: Taxpayers who paid these taxes since August 1, 2024, may claim refunds, plus interest, legal fees, and up to $1,000 per day in damages.
• Official Accountability: State officials may be held personally liable for improper tax collection.
• Retroactive Effect: Violations back to August 1, 2024, will be covered, with an emergency clause for immediate effect. (Click here for instructions on claiming refunds for sales and use tax paid on purchases of bullion and collectible currency.)

NCBA executive director David Crenshaw celebrated the achievement, stating, “This override is a game-changer for Kentucky’s collectors and dealers, ensuring they can operate without the burden of unfair taxation and also sending a strong message that fair tax policies matter.”

NCBA extends heartfelt gratitude to its Kentucky coalition leader, Byrd Saylor III of Louisville Numismatic Exchange, for his steadfast dedication to this cause. Last year, Saylor earned the Diane Piret Memorial Outstanding Service Award for his work on the original exemption bill, alongside Jeff Garrett, Jonathan Kern, Eddie Bruner, and NCBA industry issues advisor Patrick Heller, who each received Legislative Champion awards.

Governor Beshear’s veto—his second attempt in a year to formally reject an exemption on these transactions—reflected his belief that gold owners can afford to pay the additional taxes. However, in overriding this veto, the legislature’s Republican supermajority argued the policy unfairly burdened small savers and local businesses. In HB 2, Kentucky solidifies its commitment to its numismatic and precious-metal bullion community.

In addition to freedom from sales tax in future transactions, any affected taxpayers can now pursue direct refunds without administrative obstacles, a reflection of NCBA’s advocacy for fair tax policies. This legislation establishes enduring protections for Kentucky’s coin and bullion enthusiasts, and NCBA remains committed to supporting the industry nationwide.