Kentucky House Bill 2 Introduced to Protect Coin Dealers and Collectors
House Bill 2 was introduced in the Kentucky General Assembly on January 10, 2025, marking a significant development for coin dealers and collectors.
The bill directly addresses improper collection of sales and use tax on currency and bullion transactions, protecting dealers and ensuring state agencies’ compliance with existing tax exemptions.
Key Provisions of HB 2
If passed, HB 2 will
- Safeguard Tax-Exempt Status—Preserve the tax-exempt status of currency and bullion transactions under current Kentucky law.
- Allow Refund Claims—Enable those who paid sales or use taxes improperly after August 1, 2024, to seek refunds.
- Provide Compensation—Offer additional damages, including up to $1,000 per day for violations, interest, and reimbursement for legal fees.
- Ensure Accountability—Hold state agencies and officials personally liable for any improper tax enforcement.
The bill is retroactive to August 1, 2024, and includes an emergency clause, meaning it will take effect immediately upon becoming law.
Why It Matters
HB 2 fills a critical loophole in protecting the rights of Kentucky’s coin dealers and collectors. By establishing clear remedies for improper taxation and holding state agencies accountable for violations of state law, the bill reinforces the importance of compliance with established tax exemptions and prevents future violations.
The National Coin & Bullion Association will monitor the progress of HB 2 closely and provide updates as they become available.
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Source: National Coin and Bullion Association
The National Coin & Bullion Association (NCBA) is a 501(c)(6) tax-exempt trade association recognized as a leading authority in the coin and bullion communities. Committed to providing educational resources and advocacy for its members, NCBA plays a vital role in shaping the industry landscape.
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