Birmingham, Alabama (March 7th, 2018) -- Sound money advocates rejoiced today as Governor Kay Ivey signed Senate Bill 156 into law. SB 156, which passed in the Alabama state house and senate last month by overwhelming majorities, removes state sales taxation of precious metals, specifically on gold, silver, platinum, and palladium bullion.
State Senator Tim Melson (R-District 1) introduced SB 156 with the goal of encouraging precious metals purchasers to keep their investment dollars in the state rather making investments elsewhere. The bill impacts purchases of platinum, gold, palladium, or silver bullion that is valued solely upon its precious metal mass and purity, whether in coin, bar, or ingot form.
The Sound Money Defense League made the case to Alabama legislators that charging sales taxes on money itself is beyond the pale. In effect, those states that collect taxes on purchases of precious metals are inherently saying gold and silver are not money at all.
“Alabama has taken a huge step forward with the passage of SB 156. Thanks to the efforts of Senator Melson, Representative Johnson, and grassroot supporters, there are now fewer obstacles in the way of Alabama citizens to protect themselves from the inflationary practices of the Federal Reserve,” said Jp Cortez, Policy Director of the Sound Money Defense League.
The Sound Money Defense League argues that charging sales taxes on purchasing the monetary metals was tantamount to charging an 80-cent tax after asking a gas station attendant to change a 20-dollar bill.
Alabama has now joined the ranks of the 36 other states that have elected to remove gold and silver from sales taxation. Other states have advanced legislation to eliminate income taxation on gold and silver (Arizona, Utah, and Idaho) or setting up precious metals depositories to help citizens save and transact in gold and silver bullion (Texas and Tennessee).
Learn more about what states are doing to promote sound money policies here.