Arkansas Removes Taxes on Gold and Silver

Arkansas Governor Sarah Huckabee Sanders signed House Bill 1718, or the Arkansas Legal Tender Act, into law on April 11, after passing unanimously at the Senate 32-0, and through a vast majority at the House 82-8.

The new measure, introduced by Rep. Robin Lundstrum and state Sen. Jonathan Dismang, both Republicans, is backed by the Sound Money Defense League, Money Metals Exchange, and sound money advocates and supporters throughout the state. It reaffirms gold and silver as legal tender and removes tax liability on the purchase, sale, or exchange of any type or form of specie, including state capital gains taxes.

The bill defines specie as “Coin having gold or silver content; or refined gold or silver bullion that is coined, stamped, or imprinted with its weight and purity; and valued primarily based on its metal content not its form.” The measure states, “Specie or legal tender shall not be characterized as personal property for taxation or regulatory purposes.”

According to the Sound Money Defense League, which advocates for “restoring gold and silver to it’s historic role as America’s constitutional money,” working on both the state and federal level, 42 states have removed some or all taxes from the purchase of gold and silver, and Arkansas is the 11th to end taxes on capital gains from the sale of the precious metals.

The league calls taxing the exchange of these metals with currency an “atrocious policy,” as states largely don’t tax the purchase of investments, of stocks, bonds, ETFs, currencies, and other financial instruments. And gold and silver have traditionally been bought and sold as a form of investment and savings.

The league noted that passing bills like the HB 1718 will be a trend across the country, with similar measures alreadry introduced in Alaska, Iowa, West Virginia, South Carolina, Missouri, Minnesota, Tennessee, Montana, Idaho, Wyoming, Kansas, and more, to “end taxes on the metals, reaffirm gold and silver as money, establish in-state depositories, enable state treasurers to invest state funds in the metals.”

“States all over the country are waking up to the precarious condition of America’s money,” said Jp Cortez, policy director of the Sound Money Defense League.

“Arkansas is helping lead the way in defending and restoring sound money, as well as removing the disincentives for citizens to protect themselves from the inflation and financial turmoil that flows from the Federal Reserve System.”

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Information for this story was found via Sound Money Defense League, Zero Hedge, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.