MONTGOMERY — Alabama recently became the 37th state to exempt sales of gold, silver, platinum and palladium bullion and money from state sales and use taxes.
Last week, Gov. Kay Ivey signed a bill into law sponsored by State Sen. Tim Melson, R-Florence. The bill impacts bullion that is valued solely upon its precious metal mass and purity, whether in coin, bar or ingot form.
Melson hopes that the measure will encourage Alabamians to keep their investment dollars in the state.
“Levying a tax on what is essentially a currency exchange is the same as taxing someone to make change at the gas station. It makes no sense,” Melson said. “I want to think Representative Ron Johnson and Governor Ivey for their work on this common-sense legislation.”
Alabama doesn’t charge sales taxes on most types of investments. Melson’s legislation brings precious metals in line with other investment classes as opposed to treating them like a commodity to be consumed.
Sound money policy advocates and constitutionalists have praised the legislation.
“Alabama has taken a huge step forward with the passage of SB 156. Thanks to the efforts of Senator Melson, Representative Johnson and grassroots 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.
Enacting this legislation will make it possible for Alabama to host national coin shows. Operators of coin shows have noted the sales tax issue as an obstacle in the past.
The exemption is in place for five years. The new law takes effect June 1.