Gold and Silver Approved as Legal Tender by Arizona Senate

[EE_]

Friday, March 1, 2013

Arizona may become the second state, after Utah, to recognize gold and silver as legal tender authorized for payments of debts and taxes.

The Arizona Senate voted Thursday to approve SB 1439 which allows businesses and the state government to accept payments in gold or silver.

The Legal Tender bill specifies that legal tender in Arizona consists of all of the following:

1. Legal Tender authorized by Congress.
2. Specie (containing gold or silver) coin issued at any time by the U.S. government.
3. Any other specie that a court of competent jurisdiction rules by a final, unappealable order to be within the scope of state authority to make legal tender.

Currently all debts and taxes in Arizona and the rest of the United States are either paid with Federal Reserve Notes (dollars) which were authorized as legal tender by Congress, or with coins issued by the U.S. Treasury -- very few of which have gold or silver in them.

Although Article 1, Section 10 of the United States Constitution states that no state shall coin money; the same section stipulates that no state shall make anything but gold and silver coin a tender in payment of debts. In that regard the sponsors of bill feel that it will simply respect the use of gold and silver as per the Constitution without "coining" its own money.

The law also exempts taxing the exchange of gold and silver into any other currency, and states that gold and silver as legal tender would not be "subject to tax or regulation as property other than money."

S.B. 1439 is legislation modeled after Utah's which was the first to pass and be signed into law. Several other states have introduced similar measures motivated by the dollar instability caused by the Federal Reserve's recent monetary policies.

Gold and silver have historically held their value compared to unstable dollars. The value of the U.S. dollar has plummeted 98% against gold in the last 100 years since the Federal Reserve took over as the U.S. central bank in 1913.

As the Federal Reserve continues debase the currency through persistent quantitative easing, many more states may be looking to cushion themselves against further declines by legalizing competing currencies like gold and silver in the near future.

Arizona's S.B. 1439 must still pass in the State House and be signed by Governor Jan Brewer before becoming law.



http://www.activistpost.com/2013/03/gold-and-silver-approved-as-legal.html

[woodman]

If it is legal tender, does this mean that paying someone for services rendered in 90% or in gold or silver eagles would have to be taxed at face value? Could be a big deal. Wasn't it Arizona where the fellow got in trouble for paying in metals and claiming them at face?

[EE_]

I don't know where this is going, but it sounds like a problem for the money changers.

New Push in Iowa to Make Gold and Silver Legal Tender
March 1, 2013

The Arizona Senate passed legislation yesterday that would make gold and silver legal tender in their state. A similar bill was filed in the Iowa House this week. House File 346, if passed, would recognize gold and silver coin as legal tender in the state of Iowa.

Some specifics in the bill:

State banks and credit unions would have to allow gold and silver deposits and withdrawals would also have to be in gold and silver unless it has been converted to another currency. A separate account would be required.
No person may be compelled to accept gold and silver coin as legal tender.
Gold and silver coin would be free from state taxation as legal tender.
Authorizes the Iowa Department of Commerce to study the creation of gold and silver depositories.
This bill is sponsored by State Representatives Dwayne Alons (R-Hull), Larry Sheets (R-Moulton), Jason Schultz (R-Schelswig), Greg Heartsill (R-Melcher-Dallas), Dave Maxwell (R-Gibson), and Tom Shaw (R-Laurens).

This bill makes sense. For instance, why are we taxing money? This bill is also a way for Iowa to invoke monetary federalism and allows Iowans to have a choice over the U.S. Dollar which is rapidly depreciating. This is also Constitutional. Article I, Section 10 of the Constitution says that states may not “make anything but gold and silver coin a tender in payment of debts.” Our founders inserted this provision as a check against federal power to print paper money.

American Principles Project lists some practical effects of legislation similar to HF 346.

Gold and silver coins are as good as Federal Reserve notes in usage as money.
In Utah, where the legislation passed in 2011, the state has seen a 50% increase in the amount of gold holdings and the opening of several major vaults.
Citizens now have a way to save and transact in hard money that will not lose purchasing power.
Utilizing its constitutional authority a state can give its citizens the full use of an inflation-proof currency.

Former U.S. Senator Jim DeMint (R-SC), now President of the Heritage Foundation, has said that legislation like this “would encourage wider adoption of sound money measures, and that’s a step in the right direction.” I agree. The Iowa House and Iowa Senate should pass this bill. It will have a low fiscal impact on the state of Iowa and provide more liberty for the citizens of this state.

http://caffeinatedthoughts.com/2013/03/new-push-in-iowa-to-make-gold-and-silver-legal-tender/

[EE_]

The Utah Sound Money Act: Read the Draft Legislation

The Utah Sound Money Act
To amend Title 7 of the Utah Code Annotated, relating to financial institutions, so as to provide a short title; to authorize gold and silver coin as legal tender for payment of debts within the course and scope of Utah intrastate commerce; and to authorize the formation and operation of coin depositories.

BE IT ENACTED BY THE UTAH STATE LEGISLATURE:

SECTION 1.

Title 7 of the Utah Code Annotated, relating to financial institutions, is amended by adding a new chapter to read as follows:

CHAPTER 25

7-25-1. Short Title.

This Chapter is known and may be cited as "The Utah Sound Money Act."

7-25-2. Authorization of Specie Currency.
The following coinage (hereinafter referred to as "specie currency") described in the United States Internal Revenue Code sections referenced below (as existing on the date of this Chapter's enactment) constitute authorized legal tender for payment of debts within the course and scope of Utah intrastate commerce:
The United States gold and silver coinage described in Title 26 of the United States Code, §408(m)(3)(A)(i) and §408(m)(3)(A)(ii);
The state gold and silver coinage described in Title 26 of the United States Code, §408(m)(3)(A)(iv) which is authorized for issuance into Utah intrastate commerce pursuant to Subsection (4), below (hereinafter referred to as "Utah specie currency"); and
The foreign gold and silver coinage described in Title 26 of the United States Code §408(m)(3)(B).
Specie currency shall be denominated in troy ounce and grain monetary units, there being 480 troy grains contained in one troy ounce.
As legal tender money, specie currency shall not be characterized as personal property for taxation or regulatory purposes.
Utah specie currency shall only be issued or reissued into intrastate circulation by an authorized coin depository which, prior to such issuance, shall have inspected, assayed and approved each coin as being in conformity with the following criteria:
Each coin shall have a millesimal gold or silver fineness of no less than 850.
On the obverse side of each coin the year of production shall be clearly visible. The mint mark of the manufacturer shall be visible on the obverse side as well.
On the reverse side, the coin's precious metal content in troy ounces shall be clearly written and the corresponding number of troy grains shall be prominently displayed as an integer. In addition, the words "Utah Legal Tender" shall be inscribed on this side.
No coin shall bear any dollar denomination nor any resemblance whatsoever to the current or prior coin of the United States.
Every coin shall conform to all other designs and specifications adopted by the Utah Coinage Advisory Council which shall be composed of one representative from each of the following groups:
The Utah Arts Council;
The Utah Bar Association;
The Utah Banker's Association;
The Salt Lake Chamber of Commerce; and
The Utah Chapter of the American Numismatic Association.
Only one design for each denomination of gold Utah specie currency and one for each denomination of silver Utah specie currency shall be authorized for production in any given calendar year.
No person shall have the right to compel any other person to tender or to accept specie currency en lieu of United States dollars unless such person has previously agreed in writing to do so or as otherwise provided in this Chapter.
Nothing in this Chapter shall be construed so as to abrogate or in any way limit the inherent and inalienable right, as recognized and affirmed in article 1, § 1 of the Utah Constitution, of persons to use any gold or silver coin as a medium of exchange as well as to acquire, produce, hold, protect and otherwise exchange the same or any other type of property, in any amount whatsoever, within the lawful course and scope of Utah intrastate commerce.
7-25-3. Authorization and Organization of Coin Depositories
Subject to Subsection (7), the commissioner may authorize a person described in Subsection (2) to conduct business as a coin depository.
Each person authorized to conduct the business of a coin depository in this state shall be organized under and governed pursuant to the provisions of Title 48, Chapter 2c, Utah Revised Limited Liability Company Act, except as otherwise provided in this title.
Coin depositories authorized under this Chapter are hereby expressly exempt from the provisions of Title 13, Chapter 32a, entitled "The Pawnshop and Secondhand Merchandise Transaction Information Act".
Each coin depository shall file reports of its condition in accordance with Section 7-1-318.
Every coin depository authorized under this Chapter qualifies as a "bank" as that term is defined in Title 26 of the United States Code, §408(n).
Every coin depository authorized under this Chapter shall at all times maintain specie currency reserves in an amount equal to or exceeding the aggregate of all specie currency deposits existing at the coin depository.
No coin depository may conduct business under this Chapter unless all deposits held by such coin depository are insured against theft and loss.
7-25-4. Deposit Accounts.
No coin depository shall offer or maintain any deposit accounts denominated in any currency other than specie currency.
No coin depository shall commingle in the same account gold specie currency deposits with silver specie currency deposits.
In order to facilitate currency exchanges, a deposit account at a coin depository may be linked to a dollar-denominated deposit account established at any Utah bank or credit union chartered under this Title.
Currency exchanges effected between any coin depository, bank or credit union organized and authorized under the provisions of this Title shall be entirely tax free and treated for all purposes as transactions wholly within the course and scope of Utah intrastate commerce.
No currency exchanges between United States dollars and specie currency shall be deemed or construed to result in any ordinary or capital gain, profit or loss.
Deposit accounts opened as individual retirement accounts, as well as any dollar-denominated accounts linked thereto, shall comply with all applicable provisions of section 408 of the United States Internal Revenue Code (26 U.S.C. § 408).
All withdrawals from deposit accounts, other than those effectuated by currency exchanges or by electronic transfers pursuant to express depositor instructions, shall be paid out in Utah specie currency.
Coin depositories shall employ all appropriate and necessary measures for the physical security of specie currency deposits, as well as for safeguarding all information regarding each depositor's identity and the extent of their deposits.
Depositor's specie currency deposits, together with their identifying information shall only be subject to disclosure, search or seizure upon issuance of a lawful warrant or writ by a judicial officer of this state pursuant to an adequate showing of probable cause with respect to the particular depositor in question. Such warrant or writ shall be executed only under the authority of the duly elected sheriff for the county within which such depository is located.
7-25-5. Constitutionality.

If any one or more part, provision, section, subsection, sentence, clause, phrase or word of this Chapter or the application thereof to any person or circumstance is found to be unconstitutional, the same is hereby declared to be severable and the balance of this Chapter shall remain effective notwithstanding such unconstitutionality.
The legislature hereby declares that it would have passed this Chapter, and each part, provision, section, subsection, sentence, clause, phrase or word thereof, irrespective of the fact that any one or more provision, section, subsection, sentence, clause, phrase or word be declared unconstitutional.
SECTION 2.

This act shall take effect immediately upon its passage into law.
http://utahsoundmoney.org/home/index/86/0

[Roland]

If it is legal tender, does this mean that paying someone for services rendered in 90% or in gold or silver eagles would have to be taxed at face value? Could be a big deal. Wasn't it Arizona where the fellow got in trouble for paying in metals and claiming them at face?
it was in Nevada i cant remember the guys name off the top of my head but i know it was a construction business and they(IRS/state) put him through the ringer

[EE_]

States Where Gold, Silver are Legal Tender
by David Moncrief

Did you know that Utah was the first state to recognize gold as legal tender? Their Legal Tender Act of 2011 allows gold and silver coins minted in the United States to be rocognized as legal tender with their value reflecting the market price for both precious metals - silver and gold.

Other states have followed their lead and introduced similar bills - that remain to be passed - deeming gold and silver legal tender. Those states are Minnesota, North Carolina, South Carolina, Idaho and Georgia. Legalities associated with these metals being legal tender are different for each state.

Minnesota - bill states gold and silver legal tender for payment of debts under certain circumstances North Carolina - bill states that the state of North Carolina would issue its own legal tender backed by gold and silver in the state's treasury

South Carolina - bill would replace US dollar with silver and gold in as legal tender.

Idaho - bill to allow people require only silver or gold as payment.

Georgia - bill would have only Georgia state government accept United States minted silver and gold coins for payment of taxes for example.

As of last week (April, 2012), Missouri was added to the list with Idaho as states that have passed legislation recognizing silver and gold as legal tender. This was accomplished by the passing of the Missour Sound Money Act of 2012.

To have states pass laws to recognize gold and silver as legal tender may seem a bit odd since the federal government already recognizes US silver and gold bullion coins as legal tender . . . and, how might this work since no one is going to pay for a bag of pototo chips with a $50 gold coin that has a current value of around $1,600.

The Missouri legislators have taken this into account and laid out a system where an individual could deposit silver and gold coins into a vault and receive a debit card that would be connected to their coins precious metal value. This approach would also benefit those who invest in precious metals by eliminating their state's (Missouri) capital gains taxes on US minted coins.

Presently, most states are not legislating to make silver and gold coins legal tender. There are some in Missouri that say this is because doing so is more a means of sending a 'protest' to Washington rather than having an alternate currency. This is especially true since federal law would still expose these debit card users to a 28% federal capital gains tax on the underlying coins. The final decision as to wheter or not this is 'good' legislation remains to be seen, depending on whether or not hyperinflation hits.
http://www.goldcoins-silverbullion.com/statesgoldlegaltender.html

[Roland]

his name was Robert “Bobby” Kahre.they slapped him with 109 counts of tax-related crimes, varying from tax evasion to willful failure to file and conspiracy to evade taxes after seven years of operating his family businesses in this fashion. Fifty-two other counts were divided among the other eight people that were also charged. He lost... even with a presendent found in other cases saying he did nothing illegal- read the tax man going get his money don't matter what those laws are. They are for you not him( after all folks the IRS is a person. a private company run for profit)

[EE_]

Do you think we're on the right side of things, with this kind of momentum building?

Or maybe all these state legislators are just a bunch of crackpot gold bugs?

[Roland]

they can hold all the gold they want. if things go bad they are going to be some of the worst off, people know who they are because they are well off and have the most exposure. they will probably pull them out onto the streets i doubt in most cases they will even make it to the court house for a sham trial- mob rule ignorant and angry pretty scary!... plus gold and silver are not the only precious metals

[JohnQPublic]

The key take away is no tax. I am not sure if this applies to federal tax also?

[woodman]

The key take away is no tax. I am not sure if this applies to federal tax also?


I caught that too and was wondering how it would or could be construed. Thing is, if you are not using their money they surely shouldn't have any claim on your labor.

[Roland]

it would seem so if that's the case then I'm sure anyone who sells gold(paper or otherwise) will find that state a very fine place to do business. Unless that is you can only exchange it for other currency at a bank. then its only going to provide another way to consolidate real wealth into the hands of tptb(at least for now)

[EE_]

Maybe some people were listening to Ron Paul?

13 States Now Considering Allowing Gold and Other Precious Metals As Legal Tender

ATLANTA - When the governor of Utah signed a bill that made gold bullion and silver bullion legal tender in the state last March, he had no idea of the groundswell he was going to start.
The Utah Sound Money Act outright flies in the face of the fiat money system, which is the printed money used today; backed by nothing but the promises of politicians. While U.S. states cannot create their own currency under the Constitution, they are allowed to use gold bullion and silver bullion as legal tender. More and more states are now exercising that right.

Complete Copy of Utah Money Act: http://connorboyack.com/drop/SoundMoneyAct.pdf

Lawmakers in Utah, when they studied history, found that every single instance of money printing and massive increases in a country’s debt always led to the destruction of the currency and a depression among the citizens that lived through it.

They were concerned about the Fed’s money printing and massive government debt accumulation and thus signed into law the Utah Sound Money Act, which recognized gold bullion and silver bullion as currency. They felt that the U.S. dollar would continue to lose its value, while gold bullion and silver bullion would continue to maintain their value, because they are sound currencies with no debts attached to them.

The Utah law states that the gold bullion and silver bullion coins issued by the U.S. Mint can be used as payment with any merchant in the State of Utah for the purchase of all goods and services.

It is not practical for people to carry around heavy gold bullion or silver bullion coins, so the Utah Gold & Silver Depository was created. People can deposit their gold bullion and silver bullion coins there and receive a debit card to make transactions with—just like depositing money at a bank. The prices of gold bullion and silver bullion are based on the closing prices of both precious metals in U.S. dollars in London on each business day, creating the exchange rate used on the debit card.

Missouri and South Carolina in 2012 are the closest to enacting very similar legislation and creating a gold bullion and silver bullion depository, just like Utah. (Source: CNN Money, February 3, 2012.) Both states echo the same sentiments as Utah and this is evident by the names chosen for the bills. For example, in Missouri, the legislation put forth is called the Missouri Sound Money Act of 2012.

Other states considering legislation to make gold bullion and silver bullion legal tender are Montana, Colorado, Idaho, Indiana, New Hampshire, Georgia, Washington, Minnesota, Tennessee, and Virginia.

This may seem strange, dear reader, but cultures in Asia would not be surprised, considering that gold bullion and silver bullion have been considered money for 5,000 years there. Also, people forget that, until 1971, the U.S. dollar was backed by gold bullion.

The distrust of the money printing being enacted by the Federal Reserve and the unprecedented debts being accumulated by the U.S. government, which are increasing by at least $1.0 trillion per year, are being questioned.

States are fighting back with what they believe are sound money policies: gold bullion and silver bullion. We should heed their example as a warning of what’s to come.
http://gwinnettdailyonline.com/GDP/archive/article7CD4AA60A92246B7B9805C775851D0C4.asp

[EE_]

If it is legal tender, does this mean that paying someone for services rendered in 90% or in gold or silver eagles would have to be taxed at face value? Could be a big deal. Wasn't it Arizona where the fellow got in trouble for paying in metals and claiming them at face?

If it has to be taxed, it should be taxed at face value...that's all the banks will give you for gold and silver coins.

[Sparky]

...
South Carolina - bill would replace US dollar with silver and gold in as legal tender.

Idaho - bill to allow people require only silver or gold as payment.
...

The South Carolina one is inaccurate. The bill would make silver and gold legal tender, but not replace the US dollar.

The Idaho one is an interesting twist. I wonder what the result and impact of this would be. If you were a business owner, would you dare to require only silver and gold as payment? It seems like this would only work for you if you were willing to charge less for your product or service, to encourage a buyer to relinquish their gold/silver instead of their fiat, or motivate them to go acquire some gold/silver in order to purchase your product/service at the reduced rate. It seems like this would be risky for a business owner, but I would love to see someone with the guts to try it. Maybe a wealthy businessman who has enough assets to absorb the short term loss.

[iOWNme]

Tell me we arent living in Orwellls fantasy when a State needs to pass a 'Law' to make Gold and Silver money again......

[freespirit]

would that mean if you worked in one of those states, you could request to be paid in gold and silver to avoid "income" tax?
maybe if you were employed by the state gov, like in corrections or natural resources?

[Twisted Titan]

This aint good

Who owns the most Gold?

The Zionist Bankers.

Who owns the most Paper money?

The Zionist Bankers




Meet the new boss......same as the old boss.