SB156 Alabama 2018 Session

Summary

Primary Sponsor

Tim MelsonSenator

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

SB 156 would temporarily exempt the gross proceeds from the sale of bullion and money (precious metals) from Alabama sales and use taxes for five years.

What This Bill Does

It creates a five-year exemption from state sales and use taxes on the gross proceeds from selling gold, silver, platinum, and palladium bullion and money. To qualify, bullion must be refined, at least 90% pure, and its price must track the market value of the underlying metal (not be based on rarity or condition), and jewelry or art is not eligible. Buyers and sellers of these bullion items would not pay or collect sales tax during the five-year period, and the act requires annual reports from entities receiving the exemption; penalties exist for false exemption certificates. The exemption takes effect on the first day of the third month after the act is passed and will last five years from that date.

Who It Affects

• Individuals and businesses purchasing bullion or money (precious metals) in Alabama, who would not be charged state sales tax on those purchases for five years.
• Sellers and retailers of bullion or money in Alabama, who would not collect state sales tax on those transactions for five years (with required exemption documentation).

Key Provisions

• Implements a five-year exemption from Alabama state sales and use taxes on the gross proceeds from the sale of bullion (gold, silver, platinum, palladium) and money.
• Bullion eligibility requires refinement, at least 90% purity, and a price that fluctuates with the market value of the underlying metal; jewelry and works of art are not eligible.
• Defines bullion, mass purity, and non-numismatic value terms to determine exemption applicability; money is included as defined by law.
• Effective date is the first day of the third month after passage/approval; exemption lasts five years from that date.
• Requires annual informational reporting by entities receiving the exemptions, with data aligned to existing department reporting rules.
• Includes penalties for false exemption certificates under use tax provisions (misdemeanor and fines).
• Makes amendments to Sections 40-23-4 and 40-23-62 to establish and govern the bullion/money exemption.

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