The Illinois Administrative Code, Section 2-5 (18) specifically exempts the sale of “legal tender, currency, medallions, bullion, or gold or silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country, or any gold, silver, or platinum bullion and palladium bullion” from the sales tax. Thus, in Illinois, transactions involving bullion and investment coins are tax-free (with the exception of the Gold Krugerrand, which is taxed), whether they are issued by the state, the U.S. government, or a foreign government.
At the same time, it’s important to remember that federal laws and regulations are still applicable to the sale and purchase of bullion and investment coins in Illinois. Dealers are required to report certain transactions under anti-money laundering rules. In addition, any income from selling these coins may be subject to federal capital gains tax. As always, when dealing with these transactions, it’s best to consult with a financial advisor or legal professional to fully understand the applicable laws and regulations.
