Alabama Passes Sound Currency Law, Expands Sales Tax Exemption to Gold and Silver

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MONTGOMERY, AL /ACCESSWIRE/April 15, 2022/ With Governor Kay Ivey signing off on sound currency legislation today, Alabama became the second state this year to expand its sales tax exemption for gold and silver.

Alabama Senate Bill 13, championed by Sen. Tim Melson and Rep. Jamie Kiel, passed with the unanimous support of the Alabama Senate, then passed unanimously by the House of Alabama before arriving at the governor’s office.

In 2019, Alabama initially removed sales taxes on most gold, silver, platinum, and palladium coins and bullion. This year, SB 13 clarified that the exemption covers all common forms of bullion, removed onerous reporting requirements, and extended the sales tax exemption through 2028.

Supported by the Sound Money Defense League, Metals and Silver Exchangeand state supporters, SB 13 now fully ensures that citizens of the State of Yellowhammer cannot be penalized with taxes when acquiring the monetary metals for investment purposes, to protect their savings from ravages of inflation or for any other reason.

Stefan Gleason, President of Money Metals Exchange, explained the importance of extending the existing sales tax exemption on precious metals: “Many states surrounding Alabama (Georgia and Florida) have cultivated favorable monetary environments , eliminating sales taxes on gold and silver. Alabama savers and investors are grateful that the legislature has expanded and extended the state exemption.”

Alabama follows Virginia which had only days earlier expanded and extended its own monetary metals sales tax exemption earlier this month.

Including Alabama, 41 US states now fully or partially exempt gold and silver from sales taxes. That leaves 9 states and the District of Columbia as primary jurisdictions that still heavily penalize citizens seeking to protect their savings from the serial devaluation of the Federal Reserve Note.

Jp Cortez, director of policy for the Sound Money Defense League, noted that SB 13 is part of a growing national trend. “Tennessee and Mississippi, two states bordering Alabama, have considered eliminating sales taxes on gold and silver. So have Alaska, Hawaii, and New Jersey.”

States remove sales taxes on monetary metals for the following reasons:

• Taxing precious metals is unfair to some savers and investors. Gold and silver are held as forms of savings and investments. States do not tax the purchase of stocks, bonds, ETFs, currencies and other financial instruments, so it does not make sense to tax monetary metals.

• It makes no sense to levy sales taxes on precious metals because gold and silver are inherently held for resale. Sales taxes are generally levied on final consumer goods. But precious metals are inherently held for resale, not “consumption.”

• Taxation of gold and silver hurts state enterprises. This is a competitive market, so buyers from states with precious metals sales taxes often look to neighboring states that have eliminated or reduced the precious metals sales tax. Parts conventions also tend to avoid sales tax states.

• Taxing precious metals hurts citizens trying to protect their assets. Buyers of precious metals are not big investors. Most people who buy precious metals do so in small increments in order to save money. Precious metals investors buy precious metals in order to preserve their wealth against the damage of inflation. Inflation hurts the poorest among us – including pensioners, people on fixed incomes, wage earners, savers, etc.

About Sound Money Defense League

The Sound Money Defense League, a national, nonpartisan public policy group working to restore sound money at the state and federal levels and publisher of the Sound Money Index.

About Money Metals Exchange

Money Metals Exchange is a national precious metals investment and information service with over 500,000 readers and 350,000 customers. It also operates Money Metals Depository for storage of gold and silver and Money Metals Capital Group, a collateral lending institution.

Media Contact

John Cortez
[email protected]
4049488935

THE SOURCE: Sound Money Defense League

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