ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[First Reprint]

SENATE, No. 721

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 24, 2024

      The Assembly Appropriations Committee reports favorably and with committee amendments Senate Bill No. 721 (1R).

      As amended, this bill provides an exemption from the sales and use tax for the sale of investment metal bullion and investment coins. 

      The bill defines “investment metal bullion” as any elementary precious metal that has been put through a process of smelting or refining, including, but not limited to, gold, silver, platinum, and palladium, and that is in such state or condition that its value depends upon its contents and not its form.  Under the bill, the exemption would not apply to the sale of precious metals that have been assembled, fabricated, manufactured, or processed in one or more specific and customary industrial, professional, aesthetic, or artistic uses.

      The bill defines “investment coin” as any numismatic coin manufactured of gold, silver, platinum, palladium, or any other metal, including non-precious metals, and having a fair market value of not less than $1,000.  Under the bill, the exemption would not apply to the sale of jewelry or works of art made of coins, nor would it apply to the sale of commemorative medallions.

      As amended and reported by the committee, Senate Bill No. 721 (1R) is identical to Assembly Bill No. 2812 (1R), which was also amended and reported by the committee on this date.

COMMITTEE AMENDMENTS:

      The committee amendments revise the definition of “investment coin” to include only those coins having a fair market value of not less than $1,000.

FISCAL IMPACT:

      The OLS estimates that the exemption on gold and precious metal bullion would result in a state revenue loss of $6-8 million. This bill limits the exemption to bullion sales of at least $1,000 or more, which will reduce the magnitude of the state revenue loss by an indeterminate amount.