Louisiana Senate Bill SB31

Louisiana 2017 Regular Session

• Introduced: 3/21/17
• Refer: 3/21/17
• Refer: 4/10/17
• Report Pass: 5/1/17
• Engrossed: 5/8/17

Caption

Includes certain numismatic coins in the definition of tangible personal property subject to sales and use tax. (7/1/17) (EG INCREASE GF RV See Note)

Impact

The passage of SB 31 is expected to have a significant impact on how collectors and investors perceive and engage in the market for numismatic coins and precious metals in Louisiana. By effectively eliminating the state sales tax on these items, the legislation aims to boost local commerce related to numismatics and precious metals, making it more favorable for individuals to buy and sell these goods. This change aligns with broader efforts to enhance economic activity within the state by reducing the financial burden on consumers and investors in these asset categories.

Summary

Senate Bill 31 introduces changes to the classification of numismatic coins and certain precious metals under Louisiana's sales tax laws. Specifically, the bill amends existing legislation to define numismatic coins, as well as gold, silver, and platinum bullion, as tangible personal property for tax purposes. This definition includes an exclusion for coins priced at $1,000 or less, or those sold at specific trade shows, thereby exempting them from state sales and use tax beginning October 1, 2017. The intent is to incentivize the sale and purchase of these collectibles and investments within the state.

Sentiment

The sentiment around SB 31 appears to be generally positive, particularly among those in the coin and precious metal communities. Supporters argue that this bill creates a more conducive environment for collectors and investors, encouraging economic transactions that will ultimately benefit the state's economy. However, there may be concerns from a fiscal perspective, as the reduction in tax revenue from exempted sales could impact state funding. Overall, the positive outlook from proponents highlights a commitment to fostering growth in this niche market.

Contention

While there is broad support for SB 31, there are notable concerns regarding its potential impact on state revenue. Critics may argue that while the exemption promotes economic activity within the collectible market, it could lead to a significant loss in sales tax revenue that is critical for state budgets. Additionally, questions could arise about the definition of numismatic coins versus other forms of tangible personal property, which might lead to further regulatory discussions down the line. The dialogue surrounding the bill highlights the balance between encouraging economic growth and maintaining fiscal responsibility.