Letter from David Hendricson regarding the House and Senat Bill on the collection of sales tax on the sales of collector coins and precious metals.

 

Hello fellow dealers,

First, we wanted to thank all of you for your efforts in helping to move this bill along in the House and Senate, last Thursday, we were able to present the bill and its proposed amendments to the Senate Commerce Committee. Following a short discussion, the bill passed 10-0. This was a very positive step, signifying significant support for the bill, with its current amendments.

We expect the bill to be brought before the Senate Tax and Fiscal Policy Committee on Tuesday, Feb 23rd. This will be our biggest hurdle, as the bill has a projected $l.5M fiscal impact. We are providing the committee with studies that have been completed in other states showing the increased revenue from attracting coin shows back into the state, along with tax revenue increase from job growth, that offsets or makes up for the tax revenue loss from the exemption. This is where you can again help by contacting one of the Committee members, and informing them how this bill will positively affect your business and potentially create additional jobs.

Pending approval in the Senate Tax and Fiscal Policy Committee, the bill would move on to the full Senate for a vote. This would most likely occur the first week in March. Pending approval in the Senate, the bill would have to be passed back to the House for final approval, with the revised amendments. Finally, the bill would be sent to the governor's office for final signature into law, or possible veto. We have folks working on the governor's office now, to ensure we have support to take this all the way.

We have included a copy of the mock-up bill, as it currently stands, following its approval by the Senate Commerce Committee. If you have any questions or concerns, please let us know.

Thanks again for your support!


MOCK UP SHOWING HOW THE TEXT OF HB 1046 WOULD BE CHANGED BY AMENDMENTS 05, 06, AND 07

[Note: Amendment 07 incorporates the substance of AM 06 but adds "legal tender."]

                 Language being inserted is shown as underscored.



SECTION 1.IC 6-2.5-5-47 IS ADDED TO THE INDIANA CODE AS A NEW

SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1,2016]: Sec. 47. Transactions involving the sale of or the lease or rental of storage for:

(1) coins that are permitted investments by an individual retirement account or by an individually-directed account under 26 V.S.C. 408(m);

(2) bullion that is a permitted investment by an individual retirement account or by an individually-directed account under 26 V.S.C. 408(m); or

(3) legal tender;

are exempt from the state gross retail tax.

SECTION 2. IC 24-4-20 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2016]:

Chapter 20. Foreign Sellers of Precious Metals Bullion and Currency
Sec. 1. The following definitions apply throughout this chapter:

(1) "Currency" means a coin made of gold, silver, or other metal or paper
money that is or has been used as legal tender.

(2) "Foreign entity" means:

(A) if the person is a sole proprietor, an individual who does not
reside in Indiana; or

(B) ifthe person is not a sole proprietor, a person who is not
authorized under the laws of Indiana.

(3) "Person" means a sole proprietor, a partnership, a corporation, a limited
liability company, or other business entity.

(4) "Precious metals bullion" means bars, ingots, or commemorative
medallions of gold, silver, platinum, palladium, or a combination of these
materials for which the value of the metal depends on its content and not its
form.

(5) "Secretary" refers to the secretary of state.


Sec. 2. The secretary may issue a temporary registration in accordance with this chapter to a foreign entity that:

(1) wishes to sell precious metals bullion or currency at a trade fair or coin
show in Indiana;

(2) is not otherwise lawfully authorized to conduct business in Indiana; and
(3) complies with requirements of this chapter.


 Sec. 3. A registration issued under this chapter expires not later than twenty-eight (28) days after the date on which the registration is issued.


Sec. 4. A foreign entity that wishes to obtain a temporary registration to sell
precious metals bullion or currency at a trade fair or coin show in Indiana under this chapter must do the following:

(1) Submit an application to the secretary in the form and the manner
prescribed by the secretary.

(2) Pay a fee of thirty-five dollars ($35) to the secretary.


Sec. 5. A foreign entity registered under this chapter is entitled to sell precious
metals bullion and currency at a trade fair or coin show in Indiana during the term of the registration if the contract:

(1) is for the purchase of precious metal bullion or currency;

(2) requires physical delivery of the quantity of the precious metals bullion or
currency purchased not later than twenty-eight (28) calendar days after
payment of any part of the purchase price; and

(3) under which the purchaser receives physical delivery of the quantity of
precious metals bullion or currency purchased not later than twenty-eight
(28) calendar days after payment of any part of the purchase price.

Sec. 6. A foreign entity may not sell precious metals bullion or currency at a trade fair or coin show in Indiana unless the foreign entity:

(1) registers with the secretary of state under this chapter; or
(2) is otherwise authorized to conduct business in Indiana.

Sec. 7. Fees collected under this chapter shall be deposited in the electronic and enhanced access fund established by Ie 4-5-10-5.