There is a basic sales tax of 5% in the state of North Dakota, and this is the least you will pay, as certain regions apply their own additional taxes on top of this. However, this doesn’t apply to all precious metals: there are exemptions and rules that complicate the situation a bit.
Simply put, if you are buying bullion coins or bars that have a precious metal purity of 0.999 or more, you do not pay tax. However, if you are buying precious metals that have a purity that is lower than 0.999, or if you are buying medallions, rounds or items that are not classified as legal tender, tax is applied.
In North Dakota, as is the case across all of the United States, the Federal Capital Gains Tax serves to collect a percentage of your profits from the sale of precious metals. This tax comes with a maximum rate of 28%, but the actual amount you will pay depends on your personal income. All profits from the sale of investments qualify for this tax and should be reported.
As mentioned above, if you are buying bullion that is pure and carries a face value, and therefore qualifies as legal tender, you are exempt from tax in North Dakota. This means that coins such as the Silver Eagle and the Gold Eagle produced by the US Mint, as well as the Silver and Gold Maple Leafs from the Royal Canadian Mint, are tax-free in the state. You should always check in advance whether your purchase carries an additional sales tax, as this could have a big impact on any future profits you make from selling your investment.
There may be some issues with rare coins because, while they carry a face value and have been considered legal tender in the past, that may not be the case anymore and they could be taxed.
Despite being one of the 20 largest states in the US, North Dakota is one of the least populated, with only 3 states with smaller populations. The state capital is Bismarck and the largest city is Fargo, where more than 15% of all North Dakota residents live.
North Dakota came out of the recent recession better than most states, with its economy booming from many different sectors. The biggest of these is crude oil, which has flooded the state with jobs and money. Agriculture remains the biggest industry in the state and it has been this way for some time, with wheat, canola and sunflower seeds leading the way, adding to a GDP of approximately $40 billion.
North Dakota doesn’t get a lot of outside help where its economy is concerned, as this is the least-visited state of the union. Simply put, with no large cities and an expanse of agricultural land, there is very little for outsiders to see and do. Still, there are a few interesting attractions and nature lovers in particular will enjoy touring the state.
Note: GoldBroker cannot provide tax, legal, or other advice, so if you are not sure about the taxation to your personal circumstances, we recommend that you seek independent advice from a qualified professional.
All of these texts were accurate at the time of writing, but tax laws are constantly changing and it’s not easy to keep track of those changes. Because of this, we can not be held responsible for any false or out-of-date information.