Because there is so much activity happening at the state level with respect to sound money legislation, here is a quick update on some of the most important bills that are currently pending.
SALES TAX REMOVAL
First and foremost, as to repealing precious metals sales taxes, bills in Mississippi and Kentucky are moving forward quickly. And they may well be heading to each state’s respective governor for signature later this month.
Other full sales tax repeal bills are pending in Maine, Wisconsin, and Vermont – while Minnesota and Alaska are considering an expansion of their existing sales tax exemptions.
There are only eight states that still engage in the controversial practice of taxing all purchases of gold and silver.
Thanks to the ongoing efforts of Money Metals, the Sound Money Defense League, and Money Metals customers who have been lobbying their representatives, we could shrink this list to six or fewer very soon.
STATE GOLD RESERVES
Meanwhile, several states are considering bills that prompt the establishment of a gold reserve.
With inflation ravaging state budgets (as well as family budgets), an increasing number of legislators are realizing monetary metals can provide an important hedge – and that, without doing something, their states are sitting ducks right now. Bills in Idaho, Tennessee, Maine, Missouri, and Mississippi are under consideration.
In fact, the bills in Tennessee, Missouri, and Idaho have already passed out of one chamber of the legislature.
INCOME TAX REMOVAL
The other major category of legislation is removal of state income taxes on the sale of gold and silver. Efforts are underway in Iowa, South Carolina, Kansas, and Missouri to enact this policy.
Because of the steady devaluation of the Federal Reserve note, “gains” on the sale of gold and silver may not actually be gains in real terms. It therefore adds insult to injury to force Americans to pay capital gains taxes on imaginary gains. That’s why a few states are attempting to follow the example of Arizona and Utah by doing something about it, at least as it pertains to their state income tax codes.
And finally, Oregon and Florida appear poised to pass bills that reduce burdens on precious metals dealers, enabling them to better serve their customers and provide better pricing.
It’s encouraging to see so much interest in — and support for — sound money reforms so far in 2023!