Gold and silver just took another step in regaining their former status as money after the state of Ohio became the 41st one to remove their sales tax on bullion purchases.
Governor Mike DeWine passed House Bill 110, which gives the right of Ohioans and small businesses to get precious metals without getting hit by taxes.
The legislation was supported by State Representatives Riordan McClain and Kris Jordan.
“These are are common sense efforts. The government should not be taxing people’s money,” said Jordan in a comment.
“This type of double taxation discourages Ohio citizens from purchasing precious metals in the state and pushes their business elsewhere. Ohio gold and silver dealers can now better compete against other states and online marketplaces. This exemption will also let Ohio attract coin shows, which can give significant amounts of economic benefits,” he said.
The new law also got wide grassroots backing from organizations like the National Bullion Association, Money Metals Exchange, The Campaign for Liberty and the Sound Money Defense League.
Earlier this year, in testimony to the House and State Senate as the legislation was being debated, the Policy Director at the Sound Money League, Jp Cortez, said that the measure levels the field between gold and other assets like stocks. He said that the state does not charge taxes on such assets as stocks and bonds.
Cortez added that these taxes penalize normal consumers who wish to use precious metals to safeguard their wealth.
“Precious metal investors are buying them to protect their wealth against the harmful effects of inflation. Inflation also harms ‘the little guy’ – including retirees on limited incomes, and savers,” he said.
In a prepared comment, Cortez welcomed the newly changed law. However, he said that more work must be done as nine states are keeping their tax on gold and silver.
“Ohio has ended their unfair taxing of citizens who are simply buying one form of money for another. The nine states that still tax the monetary metals are more and more embarrassing themselves. The tide has changed against this stupid practice,” he said.
Ohio is the second state to withdraw its precious metals sales tax this year. In May, Arkansas also passed legislation to do the same.
Author: Blake Ambrose