Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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168.0000 COINS AND BULLION—Regulation 1599

Annotation 168.0030


168.0030 Coins—Option to Purchase. A coin shop has an option from a bank to purchase silver dimes which the bank holds and makes available for purchase in consideration for the shop's payment of 6 percent interest on the face value of the coins. The sale of the option to purchase the silver dimes is not taxable because the transaction is a sale of the shop's right of option to purchase the silver dimes, not the sale of silver dimes themselves, and because the shop has no title or possession of the silver dimes to pass on to the buyer. If the shop actually purchased the coins from the bank, sorted them and later resold them, the shop's sale would be a taxable sale. 10/17/69.