California Code of Regulations › Title 18 - Public Revenues › Division 2 - California Department of Tax and Fee Administration- Business Taxes (State Board of Equalization- Business Taxes, See Ch. 6 and 9.9) › Chapter 4 - Sales and Use Tax › Article 7 - Specific Kinds of Property and Exemptions Generally › Section 1599 - Coins and Bullion

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  General.
(1) Sales of Coins. The transfer of
				  coins for use solely as a medium of exchange, i.e., as legal tender, is not
				  subject to tax even though the transferee pays an amount exceeding the face
				  amount. For example, tax does not apply to a transaction whereby a coin changer
				  returns only 95 cents on a dollar. On the other hand, tax does apply to sales
				  of coins as collector's items or as an investment, except as otherwise
				  specified in this regulation.
(2)
				  Sales of Gold or Silver Bullion. Tax applies to sales of gold or silver bullion
				  except as provided in subdivision (a)(3) below.
(3) Sales in Bulk of Monetized Bullion,
				  Nonmonetized Gold or Silver Bullion, and Numismatic Coins. Sales in bulk of
				  "monetized bullion," nonmonetized gold or silver bullion, and numismatic coins
				  which sales are substantially equivalent to transactions in securities or
				  commodities through a national securities or commodities exchange, are exempt
				  from both the sales tax and the use tax. The exemption for sales in bulk of
				  non-monetized gold or silver bullion and numismatic coins is effective with
				  respect to sales occurring on and after January 1, 1986.
"Monetized bullion" means coins or other forms of money
					 manufactured of gold, silver, or other metal and heretofore, now, or hereafter
					 used as a medium of exchange under the laws of this state, the United States,
					 or any foreign nation. The medium of exchange must have had a legal status
					 equivalent to legal tender.
Effective September 28, 1983, "monetized bullion" includes
					 gold medallions struck under authority of the American Arts Gold Medallion Act
					 ( Title IV of Public Law
					 95-630).
Nonmonetized bullion means gold or silver which has been
					 smelted or refined and has a value dependent primarily upon its gold or silver
					 content and not upon its form.
Neither the sales tax nor the use tax applies to sales of
					 "monetized bullion," nonmonetized gold or silver bullion, and numismatic coins
					 provided the following conditions are met:
(A) The sale is in bulk amount. For sales
				  occurring on or before December 31, 2008, a sale in bulk occurs if the total
				  market value of the monetized bullion, nonmonetized gold or silver bullion, and
				  numismatic coins sold in a single transaction is $1,000 or more.
For sales occurring on or after January 1, 2009, and before
					 January 1, 2023, a sale in bulk occurs if the total market value of the
					 monetized bullion, nonmonetized gold or silver bullion, and numismatic coins
					 sold in a single transaction is $1,500 or more.
For sales occurring on or after January 1, 2023, a sale in
					 bulk occurs if the total market value of the monetized bullion, nonmonetized
					 gold or silver bullion, and numismatic coins sold in a single transaction is
					 $2,000 or more, or is equal to or exceeds the adjusted amount as computed by
					 Revenue and Taxation Code Section
					 6355.
					 For purposes of this regulation, market value means sales price as defined in
					 Revenue and Taxation Code Section
					 6011.
(B) The sale is by or through a person
				  registered pursuant to the Commodity Exchange Act (7 U.S.C. Sec. 1 et
				  seq.) or not required to be registered under the Commodity Exchange
				  Act.
(4) Sales of
				  Commemorative "California Gold" Medallions. Effective September 27, 1985, tax
				  does not apply to the sale of or the storage, use, or other consumption in this
				  state of commemorative "California Gold" medallions produced and sold in
				  accordance with Chapter 25 (commencing with Section
				  7551) of Division 7 of Title 1 of
				  the Government Code.