MONTGOMERY — Members of the Senate Education Budget Committee passed legislation that would end state capital gains taxes on gold and silver on Wednesday.
State Sen. Tim Melson's (R-Florence) bill would exclude the net capital gain derived from the exchange of precious metal bullion from an individual’s gross income. The bill does not allow a deduction for net capital losses derived from the exchange of precious metal bullion.
Melson said in committee on Wednesday, “This allows it to be used as a currency in the future.”
“This is just a further step to bringing us back I would say to a currency usage as gold and bullion,” he added.
Precious metal bullion is defined in the legislation as coins, bars or rounds containing primarily refined gold, silver, platinum or palladium that is marked and valued primarily by its weight, purity and content.
The bill now goes to the full Senate for consideration. There are six legislative days remaining in the 2024 legislative session.
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