Buying silver in Grand Rapids, MI
Michigan does not charge sales tax on qualifying silver bullion and coins. Jewelry is taxed at the 6% state rate plus any local tax. The combined state and local sales tax rate in Grand Rapids is about 6%.
Silver has one national spot price in US dollars: the prices on this page are the same as on the silver price in the United States page. What differs in Grand Rapids is tax, explained below and on the Michigan page.
Sales tax on silver in Grand Rapids
Not on investment bullion. Investment coins (fair market value above face) and gold, silver or platinum bullion of at least 90% purity are exempt (MCL 205.54s). Palladium bars and jewelry are taxed at 6%. The combined state and local rate is about 6% here.
Full state rules: silver price and tax in Michigan.
Tax when you sell silver in Michigan
Profits on silver are generally taxed by Michigan like other investment gains, under its income tax rules. At the federal level, the IRS treats bullion and most silver coins as collectibles: long-term gains (assets held more than a year) are taxed at your ordinary rate, capped at 28%, and short-term gains as ordinary income.
Selling silver or silver jewelry to a dealer in Michigan
- License: Dealers (anyone who regularly buys or receives precious items from the public in Michigan) need a certificate of registration from the local police agency (city, village or township police, or the county sheriff where there is none). Fee: up to $50. The application includes thumbprints of the owner and all employees; new employees must be reported within 24 hours. Local governments may not add extra conditions for the certificate.
- Hold period: 9 days. Keep each precious item 9 calendar days after receipt, unaltered except as needed to appraise it (Section 5). Breaking the hold is a felony.
- What the dealer records: Fill out a sequentially numbered form in ink for each purchase: certificate number, item description (metal or gem, watch numbers, all jewelry inscriptions), date, employee, the seller's name, date of birth, driver's license or state ID number, address, right thumbprint, price, payment method and check number, and the seller's signature. Send a copy to local police within 48 hours (and to police where the seller lives if different). Keep records at least one year.
- What sellers need: No purchases from anyone under 18, from anyone without a valid Michigan driver's license or state ID card, or knowingly from someone convicted of theft or receiving stolen property in the past five years.
- Payment: Cash is allowed for ordinary dealers but the payment method must be recorded. Internet drop-off stores must pay by check or electronically, only after the item sells.
- Who is exempt: Not 'precious items': coins, commemorative medals and tokens; bullion bars and discs traded by banks and commodity exchanges; items bought new from a registered dealer, manufacturer or wholesaler; returns with receipt; items under $5 without a jeweler's or serial mark; jewelry traded up for more valuable jewelry. Individuals buying for themselves and qualifying internet drop-off stores need no registration.
- Jewelers: Retail jewelers are not exempt as a group, but jewelry trade-ins toward more valuable jewelry (customer paying the difference) and returns or repairs are excluded.
- The law: Precious Metal and Gem Dealer Act, 1981 PA 95, MCL 445.481-445.492 (last amended 2006 PA 295).
Dealers report a customer's sale to the IRS on Form 1099-B only for certain forms and quantities, such as 1-kilo gold bars, 1,000 ounces of silver bars or 25 or more Krugerrands or Maple Leafs; American Eagles and smaller lots are generally not reported. Any business that receives more than $10,000 in cash in one transaction or related transactions files IRS Form 8300. Bring a photo ID when you sell.
Tax and duty information last reviewed October 2026. Rules change — confirm with your dealer or tax authority before a large purchase.