WeVote
Log In

Bill

Bill

SB 1017

Sales and Use Tax - Precious Metal Bullion or Coins - Exemption

2025 Regular Session Introduced by Johnny Mautz

All qualifying precious metal bullion or coins would be exempt from Maryland state sales and use tax starting July 1, 2025.

First Reading Senate Rules
0
WeVote Research Nonpartisan
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.

Sign in to ask a question.