This bill, introduced by Olson and O'Driscoll in the Minnesota House of Representatives, proposes an expansion of the existing tax exemptions on precious metal bullion to also include coins and other forms of currency. Currently, under Minnesota Statutes 2024, section 297A.67 subdivision 34, only precious metal bullion – defined as bars or rounds made from metals like gold, silver, platinum, or palladium, with high purity and explicitly marked with their weight, purity, and content – is exempt from sales and use taxes.

The bill amends this statute to include bullion coins and currency as tax-exempt items. It defines bullion as items made of specific precious metals where their value is based on the metal content rather than their form. Coins and currency are defined as those made of precious metal or paper that have been or are currently used as legal tender.

The amended law clarifies that this exemption doesn't apply to items such as jewelry, works of art, or scrap metal, which are considered for their artistic or assembled value rather than the pure value of the metal. The intent behind this amendment is to make the tax treatment of precious metal bullion and related items consistent with the treatment of stock bullion, ETFs (Exchange-Traded Funds), bonds, and other investment instruments.

This adjustment aims to simplify and standardize the taxation approach to different forms of metal-based assets, treating them similarly to more conventional financial instruments.