Historic Utah bill passes: Gold and Silver to be recognised as legal tender once again

You may remember last year we wrote a couple of articles (here and here) on a piece of legislation introduced at the state level in Utah that would allow citizens in that State to once again use the precious metals unencumbered as money.

We can report that Gary Herbert, the Utah governor has singed into law bill 157 titled “Currency Amendments Bill”. Essentially what this bill does it once again recognise gold and silver as legal tender.

You can read the entire bill here. However the most important sections are:

  • defining “specie legal tender” to mean gold or silver coin issued by the United
  • Specie legal tender is legal tender in the state — Person may not compel another person to tender or accept specie legal tender — Court or congressional action to authorize gold or silver coin or bullion as legal tender.

The ‘non-obligation’ part of the bill is crucial and very welcomed – as we’ve always said if a return to gold is going to be a success it will only work on a strictly voluntary basis. After-all nobody should be forced to use gold any more than people are force to use fiat currencies.

  • A nonrefundable individual income tax credit is allowed as provided in Section 59-10-1028 related to a capital gain on a transaction involving the exchange of one form of legal tender for another form of legal tender.
  • Sales of currency or coin are exempt from sales and use taxes as provided in Subsection 59-1

So capital gains and sales tax have been removed completely from gold and silver. After the voluntary aspect the tax issue is the second most important part of any gold reform. This will now put gold and silver on an equal footing with fiat currencies – now let’s see what the free market chooses.

Here is a clip of Utah House Representative Brad Galvez talking about what the new proposals mean:

Also note that the proposed legislation had more ‘hits’ on the Utah legislature website than any other piece legislation being proposed – this tells you all you need to know about the return to gold –  the interest is very real, very large and this matter is only going to grow in size.

For gold bugs around the world this is probably the most encouraging steps regarding this matter since the disaster that was Nixon taking the US off the gold standard in 1971. There will certainly be many other states in the US watching very closely to see how this new law plays out – we wish Utah all the best in this cutting edge, forward thinking, monetary reform.

Link to this article: : http://www.goldmadesimplenews.com/gold/historic-utah-bill-passes-gold-and-silver-to-be-recognised-as-legal-tender-once-again-6723/

Posted by on Apr 24 2012. Filed under Analysis, Gold and Silver Media, Gold News, Interviews, Markets. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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