HB19 Alabama 2018 Session

Summary

Primary Sponsor

Ron Johnson

Republican

Session

Regular Session 2018

Title

Sales and use taxes, exemption for sales of gold bullions, money, etc, Secs. 40-23-4, 40-23-62 am'd.

Summary

HB 19 would temporarily exempt the sale of bullion and money (gold, silver, platinum, palladium) from Alabama sales and use taxes for five years.

What This Bill Does

It removes the sales tax on the gross proceeds from selling bullion and money for a five-year period beginning on the act’s effective date. It defines bullion and sets criteria—refined form, at least 90% purity, and a price tied to the market price of the metal—for items to qualify, excluding jewelry or works of art. The act requires annual informational reports from entities that receive the exemptions, with data provided to the Legislative Services Agency. The exemption lasts for five years unless extended by future legislation.

Who It Affects

• Buyers and sellers of gold, silver, platinum, and palladium bullion and money in Alabama, who would not pay sales or use tax on these transactions for five years.
• Businesses and dealers that sell bullion or money and receive the exemption, who must file annual informational reports about the exemptions.

Key Provisions

• Exempts the gross proceeds from the sale of gold, silver, platinum, and palladium bullion, and money, from Alabama sales and use tax for five years (the exemption applies to refined bullion meeting specific standards). Jewelry or works of art are not considered bullion for this exemption.
• Bullion requirements: items must be refined, at least 90% pure, and have a sales price that fluctuates with the market price of the underlying metal, not based on rarity or condition.
• Effective date and duration: the exemption starts on the first day of the third month after passage and lasts five years unless extended by future legislation.
• Section 2 reporting: entities receiving the exemption must file annual informational reports in a department-approved format, with information shared with the Legislative Services Agency; confidentiality provisions apply.
• Section 3 effective date: the act becomes law as specified (effective date timing).

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

Subjects

Taxation