Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2012
Sales And Use Tax Law
CHAPTER 4. EXEMPTIONS
Article 1. General Exemptions
6355. Monetized, nonmonetized bullion, and numismatic coins. (a) There are exempted from the taxes imposed by this part the gross receipts from the sale in bulk of monetized bullion, nonmonetized gold or silver bullion, and numismatic coins that are substantially equivalent to transactions in securities or commodities through a national securities or commodities exchange and the storage, use, or other consumption in this state of monetized bullion, nonmonetized gold or silver bullion, and numismatic coins so sold.
(b) (1) A sale in bulk, for purposes of this section, shall be deemed to have occurred if the amount of monetized bullion, nonmonetized gold or silver bullion, and numismatic coins sold in the transaction totals, in market value, the sum of one thousand dollars ($1,000) or more, or its equivalent.
(2) The board shall adjust the one thousand dollar ($1,000) amount specified in paragraph (1) as follows:
(A) On or before September 1, 1994, and on or before each September 1 of each year thereafter, the board shall multiply the amount applicable for the current calendar year by the inflation factor adjustment determined by the Franchise Tax Board pursuant to subdivision (h) of Section 17041, the resulting amount to be the applicable amount for the succeeding calendar year. The applicable amount shall be operative as an adjustment of the amount specified in paragraph (1) only when the applicable amount computed is equal to or exceeds a new operative threshold, as defined in subparagraph (C).
(B) When the applicable amount equals or exceeds an operative threshold specified in subparagraph (C), the resulting applicable amount, rounded to the nearest multiple of five hundred dollars ($500), shall be operative for purposes of paragraph (1) beginning January 1 of the succeeding calendar year.
(C) For purposes of this paragraph, "operative threshold" means an amount that exceeds by a least five hundred dollars ($500), the greater of either the amount specified in paragraph (1) or the amount computed pursuant to subparagraphs (A) and (B) as the operative adjustment to the amount specified in paragraph (1).
(c) "Monetized bullion," for purposes of this section, means coins or other forms of money manufactured of gold, silver, or other metal and heretofore, now, or hereafter used as a medium of exchange under the laws of this state, the United States, or any foreign nation. "Monetized bullion," for purposes of this section, also means gold medallions struck under authority of the American Arts Gold Medallion Act (Title IV of Public Law 95-630).
(d) A sale of monetized bullion, nonmonetized gold or silver bullion, or numismatic coins, for purposes of this section, shall be deemed to be substantially equivalent to a transaction in securities or commodities through a national securities or commodities exchange, if the sale is by or through a person registered pursuant to the Commodity Exchange Act (7 U.S.C. Sec. 1 et seq.) or not required to be registered under the Commodity Exchange Act.
History.—Added by Stats. 1973, Ch. 1019, operative January 1, 1974. Stats. 1980, Ch. 849, operative January 1, 1980, substituted the part of (d) following "through a person" for former wording. Stats. 1983, Ch. 1158, in effect September 28, 1983, added the second sentence in subdivision (c). Stats. 1985, Ch. 1128, effective January 1, 1986, until January 1, 1991, and as of such date is repealed unless a later enacted statute, which is enacted before that date deletes or extends that date. Upon repeal, section as it existed prior to enactment of this temporary provision shall have the same force and effect as if this temporary provision had not been enacted. Added "nonmonetized gold . . . numismatic coins" after "monetized bullion" in subdivisions (a), (b), and (d), substituted "market value" for "face amount" in subdivision (b), and deleted subdivision (e) and added new subdivision (e). Stats. 1990, Ch. 1042, in effect September 19, 1990, operative January 1, 1991, substituted "1994" for "1991" in the first sentence of subdivision (e), and deleted second sentence of subdivision (e), which provided, "If that date is not deleted or extended, then, on and after January 1, 1991, pursuant to Section 9611 of the Government Code, Section 6355 of the Revenue and Taxation Code, as amended by Section 1 of Chapter 1158 of the Statutes of 1983, shall have the same force and effect as if this temporary provision had not been enacted." Stats. 1993, Ch. 977, in effect October 11, 1993, substituted "that" for "which" after "numismatic coins" in subdivision (9); added "(1)" after "(b)"; added paragraph (2) and subparagraphs (2)(A), (2)(B) and (2)(C) to subdivision (b); added subdivision (c); and deleted subdivision (e) which contained a sunset clause which would have repealed the section effective January 1, 1994. Stats. 1994, Ch. 146, in effect January 1, 1995, substituted "sale" for "sales" after "from the" in subdivision (a) .
Foreign Coins.—A sale of foreign coins is an exempt bulk sale if their market value is $1,000 or more in United States money. Alan Van Vliet Enterprises, Inc. v. State Board of Equalization (1977) 65 Cal.App.3d 964.