Sales Tax on Gold and Silver in South Dakota
South Dakota exempts coins, currency and bullion from sales tax under SDCL 10-45-110. No purity minimum and no purchase threshold apply.
South Dakota does not charge sales tax on the purchase of coins, currency or bullion. The exemption is written into state law and applies to the gross receipts from those sales, so a buyer pays no state sales tax on a qualifying metal purchase.
What the exemption covers
SDCL 10-45-110 exempts sales of coins, currency or bullion. The statute defines bullion as any bar, ingot or commemorative medallion of gold, silver, platinum, palladium or a combination of those metals, where the value depends on the metal content rather than the form. Coins and currency are defined as any coins or currency made of gold, silver, other metal or paper that is or has been used as legal tender.
That definition is broad. It reaches precious metal bars and ingots, commemorative medallions struck in the listed metals, and coins or paper currency that has served as legal tender. Because the test turns on metal content for bullion and on legal tender status for coins and currency, the form of the item does not decide the outcome on its own.
No purity test and no dollar threshold
South Dakota’s exemption sets no purity percentage and no minimum purchase amount. A transaction does not have to reach a certain dollar figure, and a bar or coin does not have to meet a fineness standard, for the exemption to apply. The rule has been in place since SL 2007, ch 60, the 2007 session law.
| Item | South Dakota sales tax |
|---|---|
| Gold, silver, platinum or palladium bullion (bars, ingots, commemorative medallions) | Exempt |
| Coins and currency used as legal tender | Exempt |
| Purity percentage required | None |
| Minimum purchase amount | None |
| Local sales taxes | Not addressed in the statute |
What the statute does not address
The text of SDCL 10-45-110 does not set out a separate rule for jewelry, and it does not state whether local sales taxes apply on top of the state treatment. Those points are outside what the exemption itself provides, so a buyer looking at a specific item or a specific jurisdiction should confirm the treatment with the state.
What buyers commonly get wrong
One common mistake is assuming a minimum purchase amount applies. South Dakota’s exemption has no dollar threshold, so the size of the transaction is not the test.
Another is assuming a purity requirement. The statute sets no purity percentage, so a bar or medallion is not disqualified for falling below some fineness level.
A third is treating the exemption as limited to coins. The statute covers bullion as well, including bars, ingots and commemorative medallions of gold, silver, platinum, palladium or a combination of them.
A fourth is reading the exemption as covering everything sold by a metal dealer. The definition turns on metal content for bullion and on legal tender status for coins and currency, and the statute does not address jewelry or local taxes.
Checking the rule
The rule was checked in October 2026 and can change with new legislation. Before a large purchase, confirm the current treatment with the South Dakota Department of Revenue or the Legislature’s statute service. For general background on how states treat these sales, see sales tax on gold. For a specific transaction or business, consult a tax professional or your own preparer.
Common questions
Does South Dakota charge sales tax on gold and silver bullion?
No. SDCL 10-45-110 exempts gross receipts from the sale of coins, currency or bullion, which includes bars, ingots and commemorative medallions of gold, silver, platinum, palladium or a combination of those metals.
Is there a minimum purchase amount for the South Dakota bullion exemption?
No. The exemption sets no minimum purchase amount, so a qualifying sale is not required to reach a particular dollar figure.
Does South Dakota require a certain purity for exempt bullion?
No. The statute sets no purity percentage. For bullion, the value must depend on the metal content rather than the form.
Are coins covered by the South Dakota sales tax exemption?
Yes. Coins and currency made of gold, silver, other metal or paper that is or has been used as legal tender are within the exemption.
Read next
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