It’s bad enough when bait-and-switch “rare” coin dealers stick it to naive customers. But when one of those shady peddlers got involved with politicians in the state of Ohio more than 15 years ago, it was a major statewide scandal. And the fallout continues today...

Last week, state legislators in Ohio voted to repeal the state’s sales tax exemption on precious metals. Now, starting in October, residents there will generally pay at least 5.75% tax when purchasing gold and silver. Precious metal coins, rounds, and bars may be the only investments they hold that are subject to this additional cost.

Fewer Ohioans, likely, will buy physical bullion. Those who do must pay the state of Ohio for the privilege of investing in something other than conventional securities and real estate – the preferred assets of banks, brokers, and now, Ohio politicians.

Jp Cortez, Director of Policy for the Sound Money Defense League, fought on the front lines to defend the sales tax exemption for metals. He offered these comments:

“Under the dark cloud left by a rare coin shyster who stole tens of millions in Ohio taxpayer dollars a decade ago, the legislature revoked the sales tax exemption for gold and silver. We're disappointed in this setback at the hands of tax-hungry politicians. But any tax revenues Ohio may gain will almost certainly be offset by revenues lost, as some business and coin conventions could flee the state. We hope to persuade Ohio's legislature to fix this policy error in the future.”

The “dark cloud” Cortez referenced is a scandal dubbed “Coingate.” The memory of that debacle unfortunately still remains fresh in Ohio legislators’ minds.

The state had awarded a contract to Tom Noe, a rare coin dealer, to invest $50 million on behalf of Ohio’s Workers’ Compensation fund starting in 1998.

CONTINUE READING: 
https://www.moneymetals.com/news/2019/07/22/ohio-rare-coin-scam-001820