The tax on precious metals in Minnesota is complex and has changed recently. Here's an overview of the current situation as of June 2024:

Sales Tax: Minnesota has a 6.875% state sales tax, with additional local taxes that can vary. Generally, this sales tax applies to most purchases of precious metals, including bullion, coins, and numismatic items.

Recent Changes: However, a recent legislative change expanded the exemption for precious metal bullion. Previously, only bars or rounds with a purity of 99.9% or higher were exempt. Now, the exemption includes a wider range of bullion forms (bars, ingots, commemorative medallions) and metals (gold, silver, platinum, palladium, rhodium, or combinations). The purity requirement has also been removed.

Practical Implications: This means that many purchases of precious metal bullion are now exempt from sales tax in Minnesota. However, the exemption does not apply to all precious metal products. For example, coins, processed items, and items that don't meet the definition of bullion may still be subject to sales tax.