New York’s Precious Metals Sales Tax Exemption Under Threat

A recent report from Senator Andrew Gounardes, chair of the state’s Senate Budget Committee, has highlighted the exemption as part of a broader push to reevaluate tax breaks, citing an estimated $601 million in lost annual revenue.  

With state lawmakers set to hold a hearing on February 27, momentum is building to challenge this exemption—and others—as part of a larger effort to close budget gaps. If repealed, New York would diverge from the more than 41 states that have fully or partially eliminated sales taxes on precious metals, a broadly agreed-upon policy that recognizes bullion investments as an important asset class similar to stocks and bonds.  

The National Coin & Bullion Association (NCBA) and other industry advocates are working to ensure that lawmakers understand the importance of maintaining this exemption. “This exemption is not a loophole—it’s a proven driver of economic growth and job creation,” said NCBA executive director David Crenshaw. “States that have enacted or maintained these exemptions have seen significant expansion in their precious-metals industries, increased tax revenues from related economic activity, and new job opportunities. Removing it would place New York businesses at a severe competitive disadvantage, pushing investment and employment to states with more favorable policies.”

NCBA is calling all New York-based members, dealers, collectors, and investors to take action and advocate for the preservation of this critical exemption. Dealer-members interested in joining a coalition to engage with legislators and defend this exemption are encouraged to email ncba@ncbassoc.org. Additionally, collectors who are not yet members of NCBA’s free Concerned Collectors Coalition should join to ensure their voices are heard in this fight.

As the debate unfolds, NCBA will continue to provide updates and guidance to ensure that the numismatic and bullion community has a strong voice in Albany.