The bill amends Section 44 of P.L.1980, c.105 (C.54:32B-8.32) to clarify the tax exemptions related to the sales of gold, silver, investment metal bullion, and investment coins under the Sales and Use Tax Act. It specifies that receipts from the sales of gold or silver, as well as their storage, are exempt from sales tax if the sale fulfills a contract for future delivery on a licensed market. However, this exemption does not apply if the gold or silver is subsequently converted to use by the purchaser, who would then be liable for the sales tax.

Additionally, the bill introduces definitions for "investment metal bullion" and "investment coin," both of which are exempt from the sales tax. Investment metal bullion is defined as precious metals that have been smelted or refined and whose value is based on their content rather than form. Investment coins are defined as numismatic coins made of precious or non-precious metals with a fair market value of at least $1,000, excluding jewelry, works of art, and commemorative medallions. The act will take effect immediately and apply to receipts from retail sales made on or after the first day of the fourth month following its enactment.

Statutes affected:
Advance Law: 54:32B-8.32
Pamphlet Law: 54:32B-8.32