A law passed in 2024 removing all income taxes on capital gains from the sale of silver and gold will go into effect on January 1.
The new law, also known as the Sound Money Tax Neutrality Act, protects individuals from being taxed on constitutional forms of currency during times of high inflation.
The bill, championed by State Sen. Tim Melson (R-Florence) and State Rep. Jamie Kiel (R-Russellville), led to Money Metals Exchange and the Sound Money Defense naming Melson the 2024 "Sound Money Legislator of the Year."
It received bipartisan support in the 2024 regular session.
"Gold and silver are money," Kiel said following the measure's passing. "Point blank. It makes no sense to tax money and I'm proud to stand up for the Alabama residents that are rightfully concerned about the Biden administration's mismanagement of America's finances and the U.S. Dollar."
In 2018, Melson sponsored a measure removing state sales taxation of precious metals, specifically on gold, silver, platinum and palladium bullion. In 2022, he sponsored a bill to extend the expiration date of the sales tax exemption another five years.
Alabama was the 13th state to pass similar legislation.
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