Seven U.S. states have already accepted gold and silver coins as legal tenders, and four more states have either tried to reintroduce gold and silver as currency or are in the process.
The shift is rooted in Article 1, Section 10 of the U.S Constitution, stating that “No State shall make any Thing but gold and silver Coin a Tender in Payment of Debts.”
What Is The Impact Of Accepting Gold And Silver As Legal Tenders?
The state laws declaring the shift of gold and silver currency would result in the elimination of capital gains taxes on sales of gold and silver in states that accept the two metals as legal tender.
Several states have by now passed bills eliminating these taxes. If all the 50 U.S. states start using gold and silver in place of Federal Reserve notes, the Federal would no longer be able to control the state’s money.
Gold and Silver Legal Tender States
Here’s a list of gold and silver legal tender states. The list includes the U.S. states that have already implemented the bill and those that are in the process.
Utah accepted gold and silver as currency on March 10, 2011, and became the first state after 80 years to make the coins legal tender. The act paved the way for other U.S states to pursue similar legislation.
H.B. 682 bill was passed with vast support, making Louisiana the second U.S. state to exempt sales tax for gold and silver currency. The bill was later signed into law by Governor Bobby Jindal.
The West Virginia Legislature approved Senate Bill 502 by a unanimous vote. The bill suggested tax exemptions on investment in metal bullion and coin sales. Gov. Jim Justice signed the bill effective on July 1, 2019.
Arizona vetoed two bills to declare legal tender status for gold and silver coins. S.B.1439 was vetoed in 2013, and in 2015 Governor Doug Ducey vetoed a similar bill. HB2014 bill reinforces the residents’ ability to use precious metals and diversify away from paper currency, paving the way for gold and silver as currency.
The House Committee on Taxation in Kansas passed a bill declaring both the legal tender and tax-exempt status of US-minted coins in 2013.
In Oklahoma, Governor Mary Fallin signed a law, Senate Bill 862, recognizing gold and silver US-minted coins as legal tender and exempt from taxation on June 4, 2014.
In March of 2017, SB2097 was introduced, calling for establishing legal tender status for gold and silver, including safeguards from seizure by the state authorities.
Senate Bill 99 was introduced in Indiana, declaring US-minted gold and silver coins as legal tender and tax-exempt in 2013.
Senate Bill 98, which suggests income tax deduction for capital gains from the exchange of gold and silver, is up for consideration in Missouri, though a similar act failed in 2013 and 2014.
The South Carolina House of Representatives passed a bill declaring gold and silver legal tender on April 11, 2013.
Tennessee's SB0350 calls for the sales tax exemption of gold and silver coins.