More gold bars could be headed to Tennessee if one Republican lawmaker from Rutherford County has his way. A bill introduced last week would repeal the state’s sales tax on precious metals.
Gold investors range from savvy stockbrokers to seniors convinced by infomercials that precious metals will keep them safe from economic calamity. If they just receive a certificate and keep the physical gold in a tax-free state, they can avoid the sales tax in Tennessee.
Rep. Joe Carr says he visited one of the country’s largest depositories in Connecticut, where there’s a tax exemption. Carr says one of his constituents wants to start a big gold and silver storehouse here. "Because of Tennessee’s geography to other states, we could be a depository and create a whole new industry in Tennessee," he says.
Nearby, Georgia and Mississippi already exempt precious metals from sales taxes. If Tennessee follows suit, it would give up an estimated $4 million a year in tax collections.