Precious Metals Now Legal Tender in Alaska

Alaska has enacted legislation recognizing gold and silver specie as legal tender while eliminating local sales and use taxes on precious-metals transactions statewide. According to its supporters, this move will benefit collectors, investors, and dealers. House Bill 1 became law on May 29, and the measure will take effect August 28.

Sponsored by Representative Kevin McCabe and Senator Mike Cronk, the legislation exempts gold and silver specie from local sales and use taxes imposed by Alaska municipalities and boroughs. It also directs the Legislative Budget and Audit Committee to study whether specie could be accepted for the payment of taxes, debts, and other public charges. Although Alaska does not impose a statewide sales tax, local governments may levy their own taxes.

“This is an important step toward treating precious metals as money rather than taxable commodities,” said David Crenshaw, executive director of the National Coin and Bullion Association. Alaska now joins 45 states that provide complete or partial sales-tax exemptions for coins and precious-metals bullion.