Coin show threatens to leave Baltimore over O’Malley budget

The general manager of three annual coin shows in Baltimore threatened to move the events to another state following a proposal by Gov. Martin O’Malley to eliminate a tax break for sales of precious coins and bullion.

David Crenshaw, general manager of Whitman Coins and Collectibles Expo LLC, said the measure included in O’Malley’s budget would “result in significant loss of economic benefit to Maryland and Baltimore since our three shows would most likely move to a friendlier state with no sales tax.”

“Other attractive cities have been anxious to host the national shows due to their overwhelming success in generating economic benefits to city businesses,” Crenshaw wrote to The Daily Record on Thursday.

O’Malley included the proposal to close the precious coin sales tax loophole in the budget he outlined Wednesday. The budget, and the closure of the loophole, still face legislative changes.

The Daily Record wrote extensively about the precious coins tax loophole and the billions in tax breaks the state gives away every year. The tax break in question exempts sales of coins and bullion of more than $1,000 from the sales tax.

Crenshaw said the tax break “has been critically important to the success of our three national shows conducted at the Baltimore Convention Center each year during the past 20 years. These shows attract thousands of attendees that generate a positive economic impact to both Maryland and Baltimore.”

Visit Baltimore estimated the three Whitman shows in 2011 totaled 8,000 attendees and pumped nearly $4 million into the local economy.

O’Malley’s budget projections show eliminating the tax credit would save the state $3 million next year.

Crenshaw said the benefit would not be that great.

When a Baltimore County delegate tried to eliminate the loophole last year, legislative analysts estimated the state would see tax revenues rise $1.25 million per year.

Whitman and city political leaders successfully lobbied against the bill and it was never put up for a vote.

The company is hoping for a similar result this year.

Eliminating the tax exemption “would be devastating to thousands of small business owners in our profession, and at the same time deliver a blow to tourism dollars generated by attracting coin conventions to Maryland hotels, restaurants and retailers,” Crenshaw wrote.