Miholer, Brad Karoleff of Cincinnati’s Coins+, Longstreth, ICTA treasurer Patrick Heller and ICTA executive director Kathy McFadden each testified at an April 14, 2015, public hearing before Ohio’s House Ways and Means Committee, explaining why taxing coins and bullion hurt Ohio’s coin dealers and kept major coin shows away from the state.
In Ohio’s Senate an exemption for investment coins and bullion was introduced on May 27, 2015, and it was passed by both houses.
Longstreth said, “Ohio now joins the 33 other states with a sales-tax exemption. I wish to thank everyone that helped make this exemption a reality. The ICTA partnership was invaluable to the successful conclusion of our efforts.”
McFadden added, “We’re taking a moment to celebrate the victory in Ohio, but that’s only one front in the fight to promote a robust coin industry. We have a lot of work to do throughout the country, and we need dealers to join with us in that fight.”
Helping business in Ohio
Karoleff said that the new exemption will have a positive impact on his rare coin business. “Governor Kasich has given Ohio coin dealers the ability to compete with online sellers of gold and silver by signing the sales tax exemption bill. The governor has guaranteed that precious metal investment dollars will remain circulating in Ohio.” He concluded, “I am sure that the sales of gold and silver coins will significantly increase next year not only at my stores in Cincinnati, but throughout Ohio.”
Ohio had previously enjoyed an exemption on sales on investment metal bullion and investment coins that was enacted in 1989.
In 2005 the tax was reinstated in a move that was widely seen as punishment for a scandal popularized as “Coingate.”
It involved Toledo-area coin dealer Tom Noe, who was convicted of misappropriating funds from a $50 million rare coin fund that he managed for the Ohio Bureau of Workers’ Compensation. Noe was given an 18-year sentence in 2006 and ordered to pay back more than $13 million in restitution to the Bureau.
A Fiscal Note and Local Impact Statement prepared on May 25 by the Ohio Legislative Service Commission estimates that the state may lose between $4.3 million and $5.7 million in sales and use tax in 2017 due to the new exemption.