What Investors Should Know
New York precious metals buyers have reason to celebrate. The long-standing state sales tax exemption on bullion remains intact, following a final state budget that left the controversial repeal proposal off the table. This outcome protects investors purchasing qualified gold, silver, platinum, and palladium - ensuring that New York continues to support tax-free investment in physical precious metals.
2025 Budget Outcome: Tax-Free Bullion Survives
The exemption, found under Tax Law § 1115(a)(27), eliminates state sales tax on bullion purchases over $1,000, as long as the items are sold based on metal content and not intended for artistic or industrial use. The proposal to eliminate this exemption was actively considered during New York’s 2025 budget discussions.
However, when Governor Kathy Hochul signed Senate Bill S3009 on May 9, 2025, the repeal was not included - an outcome welcomed by investors, coin dealers, and precious metals advocates.
“Removing the exemption would have driven up costs and harmed small dealers,” said a representative from the National Coin & Bullion Association (NCBA). “This is a meaningful win for sound money advocates across New York.”
How Investors Benefit from the Continued Exemption
New York residents who purchase investment-grade bullion can continue enjoying the following advantages:
- No Sales Tax on Qualified Purchases
Precious metals coins and bars - gold, silver, platinum, or palladium - sold primarily for their intrinsic metal value remain exempt from sales tax when purchases exceed $1,000. - More Buying Power
Investors can focus their budget on the metal itself, not on added taxes, allowing for a more efficient allocation of capital. - A Competitive Edge for Local Dealers
New York precious metals businesses stay competitive with dealers in more than 40 states that also offer tax exemptions on bullion.
The Hidden Costs of a Repeal
Had lawmakers removed the exemption, investors would have faced steep sales tax rates ranging from 4% to nearly 9% depending on jurisdiction. For high-value purchases, this could have added hundreds - or even thousands - of dollars to a single transaction, especially with spot prices hovering near all-time highs.
The potential consequences included:
- Investor Migration
Buyers may have shifted to out-of-state or online dealers offering tax-free options. - Business Losses
New York-based bullion dealers would likely have seen a decline in local sales and competitive pricing power. - Economic Ripple Effect
A slowdown in local metals transactions could have led to job losses and reduced state revenue - not growth.
Industry Advocacy Helped Save the Exemption
The successful defense of the exemption wasn’t accidental. Organizations like the NCBA led grassroots advocacy efforts beginning in early 2025, mobilizing investors, collectors, and dealers to take action.
- Awareness campaigns were launched
- Legal briefs were submitted to lawmakers
- New Yorkers were urged to contact their representatives
This coordinated pushback ultimately helped ensure the exemption stayed in place - for now.
A Positive Outcome for the Bullion Market
Preserving the bullion sales tax exemption in New York sends a strong message: gold, silver, platinum, and palladium are financial assets, not luxury goods. The 2025 budget decision ensures that everyday investors, collectors, and retirement planners can continue accessing precious metals without unnecessary tax burdens.
At NYC Bullion, we proudly support fair, transparent access to gold and silver for all investors. We're grateful to those who helped protect this exemption and remain committed to helping you build your portfolio confidently - tax-free and stress-free.
Important Update:
Just days after confirming the exemption’s survival, a new legislative threat has emerged.
Click here to find out about the New Legislative Threat to NY Bullion Tax Exemption.