Mississippi 2023 Regular Session

Mississippi House Bill HB23

Introduced

1/3/23

Refer

1/3/23

Failed

2/22/23

Caption

Sales tax; exempt sales of platinum, gold, silver bullion and numismatic coins.

Impact

The amendment to Section 27-65-111 directly impacts the state's sales tax laws by categorically exempting specified categories of tangible personal property from sales taxation. This change could lead to a fiscal impact for the state budget, as it removes a source of sales tax revenue. However, it is anticipated that the boost to the metals market could counterbalance this by increasing overall market activity, thus indirectly enhancing economic activity and tax revenues in other sectors.

Summary

House Bill 23 aims to amend the Mississippi Code of 1972 by establishing a sales tax exemption for sales of platinum, gold, and silver bullion valued solely based on their metallic content, and for numismatic coins priced at $1,000 or less. The bill intends to promote investment in precious metals and numismatic items, providing a financial incentive to collectors and investors within the state. By exempting these sales from taxation, the proponents argue that it will enhance the economic environment for such transactions, potentially attracting more buyers and fostering local economic growth.

Contention

While supporters claim the bill will invigorate the economy and support collectors and investors, there may be contention over the potential loss of state revenue from these exemptions. Critics might express concerns regarding the long-term implications of reduced tax bases and could argue that the state should consider alternative ways to promote economic growth without sacrificing tax revenues. Additionally, there could be discussions related to compliance with federal regulations regarding precious metals, ensuring that the state maintains standards that align with broader financial compliance measures.