The Arkansas Legal Tender Act, or House Bill 1718, was signed into law on 11th April by Governor Sarah Huckabee Sanders. The new law confirms the status of gold and silver as legal tender.
It eliminates tax liability on the purchase, sale, or exchange of any form of these precious metals, including state capital gains taxes. The Senate soundly approved the bill with an impressive vote of 32-0, showing unified support for its objectives. The bill also received overwhelming support from the House, passing a vote of 82-8. Representative Robin Lundstrum and state Senator Jonathan Dismang introduced the legislation. In addition, it gained support from various private organizations and advocates of sound money in the state.
According to the bill, ‘specie’ includes refined gold or silver bullion engraved or stamped with its weight and purity and coins containing gold or silver. It emphasizes that the value of a specie primarily comes from its metal content rather than its form. As per measure, “Specie or legal tender shall not be characterized as personal property for taxation or regulatory purposes.”
Sound Money Advocates Celebrate Arkansas' Stand Against Gold and Silver Taxes
The Sound Money Defense League, an organization dedicated to advocating for the restoration of gold and silver as America's constitutional money, reports that, remarkably, 42 states have taken steps to eliminate or reduce taxes on the purchase of these precious metals. By passing this bill, Arkansas joins the ranks of the 11th state to eliminate taxes on capital gains from the sale of precious metals. This achievement marks a significant milestone in the state's commitment to fostering a favorable environment for individuals engaged in the trade of gold and silver.
The Sound Money Defense League criticizes the policy of taxing the exchange of gold and silver with currency, considering it unfair since other financial instruments, such as stocks, bonds, and ETFs, are exempted from taxes. Gold and silver have traditionally been regarded as investment assets and a means of savings. Arkansas emerges as a pioneering state in defending and restoring sound money by addressing this disparity and removing the obstruction for citizens to protect themselves from inflation and financial turmoil.
The league predicts that the passage of bills like HB 1718 will become a widespread trend across the country. Numerous states, including Alaska, South Carolina, Iowa, Missouri, Tennessee, Montana, Idaho, Minnesota, Wyoming, West Virginia, and Kansas, also proposed bills. These bills aim to eliminate taxes on precious metals, reaffirm the status of gold and silver as currency, establish in-state depositories, and enable state treasurers to invest state funds in these metals.
Jp Cortez, the policy director of the Sound Money Defense League, stated that- states nationwide are becoming increasingly aware of the concerning situation of America's currency. He praised Arkansas for safeguarding and restoring sound money and eliminating barriers that discourage citizens from protecting themselves against inflation and financial instability caused by the Federal Reserve System.
Addressing the Impact of Taxes on Precious Metals:
The decision to remove sales taxes on gold and silver in Arkansas acknowledges their role as a safeguard against currency devaluation caused by inflationary practices. Despite limited ‘gains’ when converting these metals back to dollars, the purchasing power remains unaffected due to the steady decline of the Federal Reserve note. Nonetheless, taxes on these gains are still imposed—the passage of House Bill 1718 in 2023 marks the end of taxing gold and silver in Arkansas.
With a clear vision, Arkansas is reshaping the economic landscape, fostering stability, and empowering individuals to navigate the challenges of today's financial climate with confidence.
