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KS Notice 19-02 Kansas Retailers' Sales Tax 2019-07-01

Are sales of gold and silver coins and precious-metal bullion exempt from Kansas sales tax?

Short answer: Kansas Notice 19-02 explains that 2019 House Bill 2140 amended K.S.A. 79-3606 to add a new sales tax exemption, effective July 1, 2019, for all sales of gold or silver coins and palladium, platinum, gold, or silver bullion. Under new subsection (mmmm), 'bullion' means bars, ingots, or commemorative medallions of gold, silver, platinum, palladium, or a combination, for which the value of the metal depends on its content and not its form.

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This page answers the general question as of 2019. Ezel answers yours, under current Kansas tax law, with citations.

Currency note: this ruling is from 2019
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Kansas Department of Revenue Notice: public guidance the Department issues to explain Kansas tax law, most often a newly enacted statute. It states the Department's general interpretation and administration of the law; it does not have the force of law and is not a private ruling issued to any one taxpayer. It reflects the statutes, regulations, and rates in effect on its issue date and may since have been amended or superseded by a later notice or law change, so confirm it is still current before relying on it. Kansas state and local sales and use taxes are administered centrally by the Department, so there is no self-collected home-rule city tax outside its scope. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

Kansas Notice 19-02 explains a new sales tax exemption for precious-metal coins and bullion, created by 2019 House Bill 2140.

The exemption. House Bill 2140 amended K.S.A. 79-3606 to add new subsection (mmmm), which exempts from sales tax "all sales of gold or silver coins; and palladium, platinum, gold or silver bullion."

What "bullion" means. For this exemption, "bullion" means bars, ingots, or commemorative medallions of gold, silver, platinum, palladium, or a combination, for which the value of the metal depends on its content and not the form.

Effective date. The provisions of K.S.A. 79-3606(mmmm) became effective July 1, 2019.

What this means for you

Coin and precious-metal dealers

  • From July 1, 2019, your sales of gold or silver coins and palladium, platinum, gold, or silver bullion are exempt from Kansas sales tax.
  • The exemption covers bullion valued for its metal content (bars, ingots, commemorative medallions), not items valued for their form.

Investors and buyers

  • You do not pay Kansas sales tax on purchases of qualifying gold or silver coins or precious-metal bullion made on or after July 1, 2019.

Common questions

What is exempt? All sales of gold or silver coins and palladium, platinum, gold, or silver bullion.

What counts as "bullion"? Bars, ingots, or commemorative medallions of gold, silver, platinum, or palladium whose value depends on the metal content, not the form.

When did the exemption take effect? July 1, 2019.

Which statute provides it? K.S.A. 79-3606(mmmm), added by 2019 House Bill 2140.

Citations and references

  • House Bill 2140 (2019) -- amended K.S.A. 79-3606 to add the precious-metal exemption, effective July 1, 2019.
  • K.S.A. 79-3606(mmmm) -- exempts sales of gold or silver coins and palladium, platinum, gold, or silver bullion, and defines "bullion."

Source

Original ruling text

Tax Policy
109 SW 9th Street Phone: 785-368-8222
PO Box 3506 Fax: 785-296-1279
Topeka KS 66601-3506 www.ksrevenue.org
Mark A. Burghart, Secretary Laura Kelly, Governor

                                       NOTICE 19-02

                 EXEMPT SALES OF GOLD OR SILVER COINS;
            AND PALLADIUM, PLATINUM, GOLD OR SILVER BULLION
                                       (JULY 1, 2019)

   During the 2019 Legislative Session House Bill 2140 was passed and signed into law. This

Bill amended K.S.A. 79-3606 to provide an exemption from sales tax for sales of gold or silver
coins, and palladium, platinum, gold or silver bullion. Specifically, the new subsection provides
an exemption for:

         (mmmm) all sales of gold or silver coins; and palladium, platinum, gold or silver
   bullion. For the purposes of this subsection, "bullion" means bars, ingots or
   commemorative medallions of gold, silver, platinum, palladium, or a combination
   thereof, for which the value of the metal depends on its content and not the form.

The provisions of K.S.A. 79-3606(mmmm) will become effective July 1, 2019.

                                  TAXPAYER ASSISTANCE

  Additional copies of this notice, forms or publications are available from our web site,

www.ksrevenue.org. If you have questions about this Notice, please contact:

                               Taxpayer Assistance Center
                              Kansas Department of Revenue
                              Scott Office Building, 1st Floor
                                     120 SE 10th Ave
                                      P. O. Box 3506
                                 Topeka, KS 66675-0260
                                   Phone: 785-368-8222
                                    Fax: 785-291-3614

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