In a historic move, the New Jersey Assembly has unanimously voted to eliminate the sales tax on physical gold and silver. Assembly Bill A5294 exempts precious metals purchases over $1,000 from state sales taxes, aligning New Jersey with the majority of states that have already ended this regressive tax.
This achievement is the result of several years of effort from the Sound Money Defense League, Money Metals Exchange, and in-state supporters.
Taxing precious metals is an outdated practice in the United States, with 43 states having already abandoned it. Mississippi most recently ended this tax in their state, with, Alabama, Virginia, and Tennessee also having ended this practice in the last few years. It is time for New Jersey to follow suit and remove this burden on its citizens.
Sales tax applied to purchases of sound money is inappropriate, as precious metals are held for resale, not "consumption."
Studies have shown that taxing precious metals is an inefficient revenue collection method. All three of New Jersey’s neighboring states have recognized this and exempted gold and silver from sales taxes. New Jersey should do the same to protect its businesses and prevent economic activity from flowing to neighboring states.
Exempting precious metals from sales taxes aligns the Garden State with the United States Constitution, which mentions gold and silver exclusively as money.
By passing Assembly Bill A5294, New Jersey can raise its ranking in the Sound Money Index, improve economic competitiveness, and become a champion of sound money principles. The Sound Money Defense League commends the Assembly members for their unanimous support.
The bill now moves to the state Senate, where we urge Senators to recognize the overwhelming grassroots support and seize the opportunity to promote sound money.
Related bills to restore sound, constitutional money have also been introduced this year in Alaska, Iowa, West Virginia, South Carolina, Maine, Missouri, Minnesota, Tennessee, Montana, Idaho, Wyoming, Kansas, and more.
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About the Author:
Jp Cortez is a graduate of Auburn University and a resident of Charlotte, North Carolina. He is the Policy Director of the Sound Money Defense League, an organization working to bring back gold and silver as America's constitutional money. Follow him on Twitter @JpCortez27