Kentucky General Assembly Overrides Governor Andy Beshear's Veto of House Bill 2, Enacting a Sales-Tax Exemption for Currency, Bullion, and Coins

In a landmark victory for coin dealers, collectors, and investors, the Kentucky General Assembly has overridden Governor Andy Beshear's veto of House Bill 2

The Kentucky General Assembly has voted to override Gov. Andy Beshear’s veto of House Bill 2, granting a sales-tax exemption for currency, bullion, and coins.

The legislation, which was originally introduced on Jan. 10, passed the House with a 76-17 vote and the Senate with a 30-6 vote earlier this year.

The veto override, which was finalized on March 27 with an 80-19 vote in the House and an 31-6 vote in the Senate, marks the successful conclusion of a year-long effort to protect Kentucky taxpayers.

HB 2 is meant to provide permanent tax relief on sales of currency, coins, and bullion transactions, and claims for this tax relief may be brought by any taxpayer.

It also grants taxpayers the right to seek a refund, plus interest, legal fees, and up to $1,000 per day in damages, for any sales and use taxes paid on these transactions since Aug. 1, 2024.

State officials may be personally held liable for any improper tax collection, and the legislation’s retroactive effect means that any violations of the legislation will be covered back to Aug. 1, 2024.

An emergency clause in the legislation provides for its immediate effect.

“This override is a landmark victory for coin dealers, collectors, and investors across Kentucky,” said NCBA executive director David Crenshaw.

“We thank the legislature for standing strong against the governor’s veto and ensuring that this common-sense tax policy remains in place.

“This win also sends a powerful message that fairness in taxation is critically important.”

NCBA extends heartfelt gratitude to its Kentucky coalition leader, Byrd Saylor III of Louisville Numismatic Exchange, for his steadfast dedication to this cause throughout the year.

Last year, Saylor was the recipient of the Diane Piret Memorial Outstanding Service Award for his work on the original exemption bill, while Jeff Garrett, Jonathan Kern, Eddie Bruner, and NCBA industry issues advisor Patrick Heller each received Legislative Champion awards.

Governor Beshear’s veto had expressed his view that gold owners can afford to pay the additional taxes.

However, in overriding this veto, the legislature argued that the policy unfairly burdens small savers and local businesses.

In HB 2, Kentucky is reaffirming its commitment to its numismatic and precious-metal bullion community.

In addition to freedom from sales tax in future transactions, any affected taxpayers can now pursue direct refunds without administrative obstacles.

Information can be found at https://revenue.ky.gov/News/Pages/Instructions-on-Refunds-for-Sales-and-Use-Tax-Paid-for-Purchases-of-Bullion-and-Collectible-Currency.aspx, where instructions are provided on how to claim refunds for sales and use tax paid since Aug. 1, 2024, on purchases of bullion and collectible currency.