34 Tex. Admin. Code § 3.336 - Currency, Certain Coins, and Gold, Silver, and Platinum Bullion.
(a) Definitions. The following words and
terms, when used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1)
Bullion--Gold, silver, or platinum that is formed into uniform shapes and
quantities such as ingots, bars, or plates, with uniform content and purity, as
are suitable for or customarily used in the purchase, sale, storage, transfer,
and delivery of bulk or wholesale transactions in gold, silver, or platinum.
(2) Currency--The coin and paper
money of the United States or another country that is designated as legal
tender and circulates and is customarily used and accepted as a medium of
exchange in the country of issuance.
(3) Numismatic coin--A coin that is not used
as a medium of exchange or whose price depends more on characteristics such as
beauty, rarity, and condition than on its metal content or its face
value.
(b) Taxability of
sales of gold, silver, or numismatic coins, and gold, silver, or platinum
bullion. Effective October 1, 2013, the sale of gold, silver, or numismatic
coins or of gold, silver, or platinum bullion is exempted from Texas sales and
use tax.
(1) This exemption does not include
gold, silver, or numismatic coins, or gold, silver, or platinum bullion in the
form of jewelry or other items of adornment.
(2) The purchase of a commodity contract for
items exempt under this subsection is not a taxable transaction.
(c) Taxability of currency
exchanges. The exchange of currency for another form of currency based on an
exchange rate is not a taxable transaction if the invoice, receipt, billing,
sales slip or ticket, or contract issued to the customer identifies the
exchange rate.
(d) Taxability of
the sale of certain paper money. The sale of paper money that is not currency
is taxable as the sale of tangible personal property. Sales or use tax is due
on the total sales price of the paper money.
(e) Use of gold, silver, or numismatic coins
or gold, silver, or platinum bullion to acquire taxable items.
Persons who use gold, silver, or numismatic coins or gold, silver, or platinum bullion to acquire taxable items owe tax on the transaction based on the sales price of the taxable item.
Notes
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