Louisiana House Bill HB682

Louisiana 2013 Regular Session

• Introduced: 4/16/13
• Refer: 4/17/13
• Report Pass: 5/22/13
• Engrossed: 5/28/13
• Report Pass: 5/30/13
• Enrolled: 6/3/13
• Chaptered: 6/18/13
• Passed: 6/18/13

Caption

Broadens the sales and use tax exclusion for gold, silver, or numismatic coins, or platinum, gold, or silver bullion (EN DECREASE GF RV See Note)

Impact

The passage of HB 682 has significant implications for state laws regarding taxation on tangible personal property. By exempting high-value precious metals and coins from sales taxes, the legislation is aimed at promoting investment in these assets within Louisiana. Supporters argue that this exclusion will encourage purchasing and trading in precious metals, potentially generating economic activity and attracting collectors and investors to the state. It's expected to also enhance the attraction of Louisiana as a favorable market for numismatics and precious metals, aligning the state’s tax practices with others that offer similar exemptions.

Summary

House Bill 682 seeks to amend the Louisiana sales and use tax laws by broadening the exclusion for certain precious metals and numismatic coins. Specifically, the bill modifies the definition of 'tangible personal property' to exclude from sales and use taxes gold, silver, or numismatic coins, as well as platinum, gold, or silver bullion valued at one thousand dollars or more. This amendment aligns tax treatment for these items with that of certain other commodities, providing a more favorable tax environment for investors and collectors of these assets.

Sentiment

The sentiment around HB 682 appears to be generally supportive among legislators and stakeholders who advocate for the investment potential in precious metals and collectibles. Proponents emphasize that the bill encourages economic engagement in this sector and aligns Louisiana with national trends regarding the treatment of such assets. Critics of similar tax exemptions often worry about the long-term fiscal impacts, but specific opposing narratives were not evident in the recent discussions and voting regarding HB 682.

Contention

While HB 682 helps in simplifying tax obligations for investors in the precious metals market, potential points of contention could arise regarding how this affects overall state revenue from sales taxes. Some lawmakers may express concerns about the implications of broadening the tax exemptions, particularly regarding how it may influence funding for public services that depend on sales tax revenues. Nevertheless, during the discussions leading up to the bill's passage, the focus remained primarily on fostering a more robust market for precious metals without significant opposition emerging.