On Tuesday May 18th, the Ohio Senate Finance Committee and the Ohio House Ways and Means Committee both heard measures that would reinstate the sales tax exemption on gold and silver that was recently repealed.
House Bill 110, the state's budget bill, was heard by the Ohio Senate Finance Committee. Meanwhile, House Bill 268, sponsored by Rep. Kris Jordan, was heard by the House Ways and Means Committee. Hearings are still ongoing for HB 110, but a vote is expected soon.
In the House Ways and Means Committee, HB 268 was passed with a favorable ruling out of the committee by a vote of 11-6.
Jp Cortez, Policy Director of the Sound Money Defense League, traveled to Ohio to testify before both committees. Reinstating the sales tax exemption on gold and silver coins and bullion would benefit the state of Ohio in several ways:
- Taxing precious metals is unfair to certain savers and investors. Gold and silver are held as forms of savings and investment. Ohio does not tax the purchase of stocks, bonds, ETFs, currencies, and other financial instruments.
- Levying sales taxes on precious metals is inappropriate. Sales taxes are typically levied on final consumer goods. Computers, shirts, and shoes carry sales taxes because the consumer is "consuming" the good. Precious metals are inherently held for resale, not "consumption," making the application of sales taxes on precious metals inappropriate.
- Taxing gold and silver harms in-state businesses. It’s a competitive marketplace, so buyers will take their business to neighboring states, such as Alabama or Louisiana (which have eliminated or reduced sales tax on precious metals), thereby undermining Ohio jobs. Levying sales tax on precious metals harms in-state businesses who will lose business to out-of-state precious metals dealers. Investors can easily avoid paying $136.50 in sales taxes, for example, on a $1,950 purchase of a one-ounce gold bar.
In total, 40 states have reduced or eliminated sales tax on the monetary metals. Ohio aims to be the 41st.
- Taxing precious metals is harmful to citizens attempting to protect their assets. Purchasers of precious metals aren't fat-cat investors. Most who buy precious metals do so in small increments as a way of saving money. Precious metals investors are purchasing precious metals as a way to preserve their wealth against the damages of inflation. Inflation harms the poorest among us, including pensioners, Ohioans on fixed incomes, wage earners, savers, and more.
This measure is one of many sound money bills being introduced across the country this year. Bills to remove taxation on sound, constitutional money are also being, or have been, introduced in Alabama, Arkansas, Hawaii, Iowa, South Carolina, Tennessee, and more.
Backed by the Sound Money Defense League, these measures protect Ohio citizens by removing barriers to insulating their wealth with the only money proven to protect against the Federal Reserve Note’s ongoing devaluation.