In January 2025, two states implemented significant changes to their tax policies regarding precious metals. New Jersey enacted Senate Bill 721, which eliminated sales taxes on virtually all purchases of gold, silver, platinum, and palladium bullion and coins with a fair market value of $1,000 or more. This exemption applies to investment metal bullion, defined as elementary precious metals that have been refined, whose value depends on their content rather than form[10].
Simultaneously, Nebraska’s Legislature Bill 1317 went into effect, repealing the state’s capital gains tax on the sale of gold and silver. This new law allows Nebraska taxpayers to reduce their gross income for state purposes by the amount of any capital gains reported to the IRS on the sale of gold and silver. Additionally, Nebraska revised its formal definition of money to explicitly exclude central bank digital currency (CBDC).
These changes are part of a broader national trend towards recognizing precious metals as sound money and reducing tax barriers to their use. As of January 2025, 45 states have eliminated sales taxes on gold and silver bullion, with only five states (Maine, New Mexico, Vermont, Hawaii, and Nevada) still fully taxing precious metals purchases. This movement is driven by the desire to treat gold and silver as money rather than commodities, provide citizens with a hedge against inflation, and reduce reliance on fiat currency. Several states, including Utah, Wyoming, and Oklahoma, have gone further by passing legislation recognizing gold and silver as legal tender, signaling a growing interest in alternative forms of currency and financial independence.
