Tennessee removes sales tax on gold and silver, only eight states remain
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(Kitco News) – Gold and silver have taken another big step towards becoming legal tender in the United States. Prior to the Memorial Day long weekend, Tennessee Governor William Lee signed into law the House Bill of 1874, removing sales taxes on gold, silver, and platinum bullion coins.
Tennessee becomes the 42nd to pass laws that will make gold and silver hard currencies.
“The victory caps the long-running efforts of the Sound Money Defense League, Money Metals Exchange, Campaign for Liberty, and Tennessee coin activists and dealers. Tennessee investors, savers and small businesses can now acquire gold, silver, platinum and palladium bullion and coins without incurring taxes of up to 10%, depending on the specific location of the purchaser,” the Sound Money Defense League, an organization national dedicated to the manufacture of precious metals as recognized currency in the United States
According to reports, the legislation passed easily through the State House and Senate, but took a long time to come up with.
“I have worked to free gold and silver from sales taxes in Tennessee since my children were in elementary school. The Sound Money Defense League, state dealers, and people all over Tennessee have made their voices heard and helped get this bill across the finish line,” Rep. Bud Hulsey said in a statement. Hulsey was the main sponsor of the bill.
There are still eight states that still tax precious metal bullion as investment assets. However, in a comment to Kitco News, Jp Cortez, director of policy for the Sound Money Defense League, said they were helping draft bills to be introduced in the remaining states.
“There is no federal sales tax in the United States, so ending sales taxes on gold and silver purchases requires a state-by-state approach. Activating grassroots efforts across the country , the Sound Money Defense League, Money Metals Exchange, and in-state groups and dealers passed 2022 legislation in Tennessee, Virginia, and Alabama securing the right for 20 million Americans to buy metals valuable without being penalized by taxes,” he said. “The remaining eight U.S. states that still fully tax monetary metals are increasingly embarrassed.”
Cortez added that growing inflationary pressures are making gold and silver more attractive to consumers looking to preserve their wealth. On Friday, the U.S. Commerce Department said its core personal consumption expenditure index posted an annual rise of 4.9% last month, down from February’s high of 5.3%.
Although inflation appears to have peaked, it remains elevated at unprecedented levels. Last week, the Federal Reserve also said inflation threatened to erode consumer wealth.
“In an era of record inflation, Tennessee should not punish citizens with sales taxes for choosing to protect the purchasing power of their savings with sound money,” Cortez said.
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