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  Taxability of coins whose sale is based on weight and value as precious metals.
  Question
  Q. Are sales of coins whose sales price is based on their weight and value as precious metal subject to Connecticut sales and use taxes?
  Answer
 

A. No, sales of gold or silver bullion, or the sales of gold or silver legal tender of any nation, traded according to their value as precious metal, and whose price fluctuates daily or at regular intervals based on fluctuations in the price of precious metals, are not subject to Connecticut sales and use taxes under Conn. Gen. Stat. § 12-412(45), as long as their total sales price, in a particular sales transaction, is $1,000 or more. For example, if you are sold, in a single transaction, multiple items of gold or silver bullion, or multiple items of gold or silver legal tender of any nation, traded according to their its value of precious metal, and no particular item has a sales price of $1,000 or more, that transaction is nonetheless not subject to Connecticut sales and use taxes as long as the total sales price of the items sold in the single transaction is $1,000 or more.

When their total sales price is $1,000 or more, gold or silver American Eagle Bullion Coins fit within this gold or silver bullion or tender exemption, because the sales price of American Eagle Bullion Coins is based on the current market price of gold or silver plus a small premium to cover minting, distribution and marketing costs. (Gold or silver American Eagle Bullion Coins are minted by the U.S. Mint but are not sold directly to the public by the U.S. Mint. Instead, gold or silver American Eagle Bullion Coins are sold to the public through a network (known as Authorized Purchasers) of wholesalers, brokerage companies, precious metal firms, coin dealers, and participating banks.)

However, the gold or silver bullion or tender exemption does not apply to sales of rare or antique coins. See FAQ 707 for information on whether sales of rare or antique coins are subject to Connecticutsales and use taxes. The gold or silver bullion or tender exemption also does not apply to platinum American Eagle Bullion Coins, irrespective of their sales price.

(Updated: 2015)

This answer is intended to provide general information concerning a frequently asked question about a current position, policy, or practice associated with the taxes administered by the Connecticut Department of Revenue Services.  It may include an informal interpretation of Connecticut tax law by the Department of Revenue Services (DRS).  However, it is not intended to serve as a legal ruling.

 
 
 
  
 
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