A 8511: Requires that sales tax exempt precious metal bullion shall be purchased by a bank, a foreign government, the U.N. or the state, federal or local government.

  
  STATE OF NEW YORK ________________________________________________________________________ 8511 2025-2026 Regular Sessions  IN ASSEMBLY May 20, 2025 ___________ Introduced by M. of A. SOLAGES -- read once and referred to the Commit- tee on Ways and Means AN ACT to amend the tax law, in relation to the sales and use tax exemption for certain transactions in precious metal bullion held for investment purposes The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 27 of subdivision (a) of section 1115 of the tax 2 law, as amended by chapter 147 of the laws of 1995, is amended to read 3 as follows: 4 (27) Precious metal bullion sold for investment, provided that (i) the 5 retailer, if so required, is registered pursuant to section three 6 hundred fifty-nine-e of the general business law, and (ii) the precious 7 metal bullion is being sold or bought by a central bank, a foreign 8 government, the United Nations, the United States of America or any of 9 the several states or territories thereof, or any of their instrumental- 10 ities, agencies or political subdivisions (or any public corporation, 11 including a public corporation created pursuant to an interstate 12 compact, international treaty, or international agreement), and (iii) 13 the receipt or consideration given or contracted to be given for such 14 bullion depends only on the value of the metal content of such bullion. 15 "Precious metal bullion" means bars, ingots or coins of gold, silver, 16 platinum, palladium, rhodium, ruthenium or iridium, but shall not 17 include bars, ingots or coins which have been manufactured, processed, 18 assembled, fabricated or used for an industrial, professional, esthetic 19 or artistic purpose. Precious metal bullion shall be deemed to be sold 20 for investment when it is sold for more than one thousand dollars and 21 the purchaser or user or agent of either of them holds it in the same 22 form as when it was purchased and does not manufacture, process, assem- 23 ble or fabricate such bullion for its own use. For purposes of this 24 paragraph, the receipt or consideration given or contracted to be given EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10975-02-5 
 A. 8511 2 1 shall be deemed to depend only on the value of the metal content if, at 2 the time of sale or purchase at retail, such receipt or consideration 3 does not exceed (i) one hundred forty percent, with respect to silver 4 coins, or (ii) one hundred twenty percent, with respect to gold coins 5 weighing one-quarter of an ounce or less, or (iii) one hundred fifteen 6 percent, with respect to other coins, of the greater of (A) the daily 7 closing bullion cash price of such metal in the open market or (B) the 8 coins' face value at prevailing rates of exchange, or (iv), with respect 9 to bars and ingots, one hundred fifteen percent of such bullion cash 10 price of such metal. Where there is no such closing price for such 11 metal, the average of the bid and asked cash prices shall be substituted 12 for such closing price. 13 § 2. This act shall take effect on the first day of the quarterly 14 sales tax period as set forth in subdivision (b) of section 1136 of the 15 tax law next succeeding the thirtieth day after it shall have become a 16 law; provided, however, that the commissioner of taxation and finance 17 may take any action with respect to the adoption, amendment, suspension 18 or repeal of any rule or regulation relating to this act, and may estab- 19 lish any procedure necessary for the timely implementation of this act 20 on or before the date on which it shall have become a law.