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SB 1017

informed consent; signatures

57th Legislature - Second Regular Session Introduced by Janae Shamp

The bill exempts all qualifying precious metal bullion or coins from Maryland sales and use tax starting July 1, 2025.

House Second Reading
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Bill Summary · SB 1017

SB 1017 — Sales and Use Tax: Precious Metal Bullion or Coins — Exemption (Maryland)

Overview / Purpose

SB 1017 removes the current dollar threshold that limits a State sales-and-use-tax exemption for precious metal bullion or coins. Under current law only sales with a sale price greater than $1,000 are exempt; this bill would exempt all sales of qualifying precious metal bullion or coins from Maryland’s State sales and use tax. The bill takes effect July 1, 2025.

Key provisions

  • Amends Tax‑General §11‑214.1 by deleting the requirement that the sale price exceed $1,000 for the exemption to apply.
  • Leaves intact the statutory definition and exclusions for “precious metal bullion or coins” (see Definitions).
  • Effective date: July 1, 2025.

Definitions (statutory)

  • “Precious metal bullion or coins” means:
    • Precious metal that has been refined and whose value depends on metal content rather than form; or
    • Monetized bullion, coins, or other forms of money manufactured from precious metals that are or have been used as a medium of exchange under state, federal, or foreign law.
  • Exclusions: Jewelry and works of art made from precious metal bullion or coins are not covered by the exemption.

Fiscal impact (from Department of Legislative Services fiscal note)

  • State general fund and special fund revenues would decrease beginning in FY 2026.
  • No impact on State expenditures.
  • Local governments: no direct fiscal effect.
  • Magnitude: a precise revenue estimate is not provided due to limited data on in‑state precious metal sales. As a simple reference point, each $500 sale exempted would reduce total sales and use tax receipts by $30 (Maryland’s 6% rate).
  • Note: a portion of sales tax revenues flows to the Blueprint for Maryland’s Future Fund (BMFF); reduced sales tax receipts will proportionally reduce transfers to BMFF under the statutory distribution formulas.

Who is affected

  • Consumers: purchasers of qualifying precious metal bullion or coins would pay no State sales and use tax on those purchases.
  • Retailers/dealers of precious metals: may see increased transaction volume; potential meaningful benefit for small businesses dealing in bullion/coins.
  • State finances and programs funded by sales tax revenues (including BMFF) would see reduced receipts.

Procedural status & related bills

  • Introduced: January 30, 2025 (Sen. Mautz).
  • Crossfile: HB 357 (Delegate Grammer) — Ways and Means.
  • Effective date when enacted: July 1, 2025.
  • Similar prior proposals: HB 1322 (2024) and HB 1169 (2023).

If you want, I can: (1) produce a rough revenue-sensitivity table (e.g., revenue loss per range of annual bullion sales), or (2) summarize fiscal implications for the Blueprint Fund specifically. Which would be most helpful?

Compiled from official sources — confirm details with the bill’s official record.

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