Ezel / Tax Rulings / TX
TX 8707L0823B01 Sales and/or Use Tax (State,Local,MTA) 1987-07-08

How did Texas sales and use tax apply to United States Constitution Coins?

Short answer: Tax applied when coins or currency were sold above face value or had no face value. For U.S. money with a face value, that amount was subtracted before tax was computed.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1987
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 1987 Texas Comptroller letter applies Rule 3.336 to United States Constitution Coins and states a general treatment for coins and currency. Verify the current rule, including any later exemptions or thresholds, before applying the historical calculation. STAR documents may no longer represent current policy even when not marked superseded. Identities are redacted. 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) is the authoritative source for any reliance.

Plain-English summary

The Comptroller said sales or use tax applied to coins and currency sold above face value or sold without a face value.

For U.S. coins and currency that had a face value, the seller first subtracted that face value from the sales price and computed tax on the remainder.

What this means for you

Under the historical rule described, Texas taxed the premium over face value rather than the full selling price of U.S. legal-tender coins or currency. Items without a face value did not receive that subtraction.

Common questions

Were United States Constitution Coins taxable? Yes, to the extent described in the letter.

What amount was excluded for U.S. money? Its face value.

What if a coin had no face value? The letter says sales or use tax was due.

Citations and references

  • Comptroller Rule 3.336 — enclosed as the governing rule for coins and currency.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller July 8, 1987

Dear ***:

Thank you for your recent letter regarding the taxability of the United
States Constitution Coins.

Sales or use tax is due on the sale of coins and currency when sold
above face value or without a face value. The face value of U.S. coins
and currency must be subtracted from the sales price before the tax is
computed. Rule 3.336 is enclosed for your reference.

This opinion is based on the facts presented. If there are additional or
different facts, the opinion may change.

If you have any questions or need more information, please call me at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write me at the Tax Administration Division.

Sincerely,
Sandi Skaggs
Tax Policy Section
Tax Administration Division

Get today's answer for your situation

You just read a 1987 ruling on this question. Ezel checks current Texas tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.