New York lawmakers are sparking concern within the numismatic and bullion community over a proposed repeal of the long-standing sales-tax exemption on precious metals and bullion purchases over $1,000. This significant change to the state’s tax policy would have wide-reaching consequences for dealers, collectors, and investors. If history is any indication, eliminating this exemption will drive economic activity out of New York, resulting in lost revenue and business closures — just as it did in other states that attempted similar moves.

Pattern of economic harm

Several states have attempted to revoke coin and precious metal bullion tax exemptions, only to reinstate them after experiencing negative economic impacts. Four notable examples include Colorado, Florida, Louisiana, and Ohio.

Colorado eliminated its precious metals and coin sales-tax exemption in the 1990s. After widespread economic concerns and pressure from the industry, the state legislature attempted to reinstate the exemption; the governor vetoed the measure twice. Eventually the legislature overrode the veto, reinstating the exemption to prevent further economic damage.

Florida suffered significant economic losses when it eliminated its sales-tax exemption on precious metals in the 1990s. The immediate fallout included more than 100 coins shows canceling or relocating out-of-state, leading to an estimated $60 million annual loss for the state’s hospitality industry. Recognizing the broader negative impact, Florida lawmakers quickly reinstated the exemption.

Louisiana suspended its exemption in 2016 as part of a broader tax overhaul in response to falling oil and natural gas revenues. Testimony in state legislative hearings highlighted issues experienced in other states following a repeal, showing that it led to lower overall tax collections. Lawmakers reinstated the exemption in 2017 — one of only four exemptions brought back — after recognizing the potential economic damage.

Ohio revoked its exemption in 2005 over a political scandal. The consequences were immediate and severe — within six months, Coin World reported that 100 coin dealerships either closed, downsized, or relocated. Additionally, all major numismatic events scheduled in Ohio were canceled or moved to tax-free states. Ohio ultimately reinstated a similar exemption, but it took years to recover.

New York consequences

New York is poised to follow in these states’ footsteps should the repeal move forward. The economic ramifications could be severe:
* Loss of business and jobs: Precious-metals dealers, coin shops, and related businesses may shut down or relocate to neighboring states like Pennsylvania, which maintains an exemption.
* Reduction in tax revenue: While the repeal aims to generate sales-tax revenue, the loss of business activity could offset any gains, as seen in Florida and Ohio.
* Event relocations: Hosting numismatic events and coin shows brings substantial economic benefits, including tourism and hotel revenue. Losing these events would harm New York’s hospitality industry, as seen in Florida.
* Investment deterrence: Precious metals are widely recognized as an investment asset, not a consumable good. Taxing these purchases would discourage investors and collectors, creating an unfair financial burden on those seeking to diversify their portfolios.

A call to action

New York’s proposal to repeal the sales-tax exemption on precious metals and bullion ignores historical precedents and economic realities. New York lawmakers need to be reminded that — rather than making the same costly mistakes as Colorado, Florida, Louisiana, and Ohio — they should prioritize policies that support local businesses, protect investors, and keep economic activity within the state.

NCBA industry issues advisor Patrick Heller and I provided testimony at the Feb. 27 Joint Legislative Budget Hearing on Taxes. However, legislators have not yet heard directly from their constituents — the business owners, investors, and collectors who would be most affected.

To prevent history from repeating itself, New York’s numismatic and bullion community must act now. The Senate Finance Committee and Assembly Ways & Means Committee will strongly influence the outcome, and constituent voices make the greatest difference. Advocates are encouraged to:
* Email committee members with personalized messages explaining how the repeal would impact their businesses and investments.
* Carbon-copy NCBA at ncba@ncbassoc.org, to help NCBA track collective outreach efforts.
* Mobilize the community by spreading awareness among fellow collectors, investors, and dealers.

The time to act is now. By voicing opposition, the numismatic community can help safeguard New York’s competitive standing and economic future.

David Crenshaw is the executive director of the National Coin & Bullion Association. 

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