HB238 Alabama 2017 Session

Summary

Primary Sponsor

Lynn Greer

Republican

Session

Regular Session 2017

Title

Taxation, sales and use tax exemptions, exempt proceeds from sale of gold, silver, and platinum bullion and coins, Secs. 40-23-4, 40-23-62 am'd.

Summary

The bill would remove state sales and use taxes on the sale and storage of gold, silver, and platinum bullion and coins, with documentation requirements for the exempt portions.

What This Bill Does

It exempts the gross proceeds from the sale of bullion and coins from Alabama sales tax and extends a use tax exemption for bullion and coins when they are stored, used, or consumed in the state. Dealers must keep proper documentation to identify which parts of a sale are exempt, and filing false exemption documents would carry penalties. The changes take effect on September 1, 2017.

Who It Affects

• Bullion and coin dealers/sellers in Alabama would not charge sales tax on exempt bullion/coin sales and must maintain documentation to prove each exempt portion.
• Consumers and businesses buying bullion or coins in Alabama would pay no sales tax on those purchases and, if the use tax exemption applies, would not owe use tax for storage or use of bullion within the state.

Key Provisions

• Adds an exemption in 40-23-4(a)(50) for the gross proceeds from the sale of gold, silver, and platinum bullion and coins, requiring dealer documentation to identify the exempt portion of each sale.
• Amends 40-23-62 to provide a corresponding use tax exemption for the storage, use, or consumption of bullion and coins in Alabama.
• Effective date: September 1, 2017.
• Maintains penalties for false exemption certificates: fines of $500 to $2,000 and imprisonment of 6 months to 1 year.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Sales and Use Tax