Sound money advocates rejoiced on Friday, March 8 as the state legislature of West Virginia overwhelmingly passed Senate Bill 502 and sent it to Governor Jim Justice for his signature.
First passed unanimously in the West Virginia Senate last month, the measure removes state sales taxation of precious metals, specifically on gold, silver, platinum, and palladium bullion and coins.
State Senator Craig Blair (R-15) introduced SB 502 with the goal of encouraging precious metals purchasers to keep their investment dollars in the state rather making investments elsewhere. The bill impacts purchases of platinum, gold, palladium, or silver bullion valued upon its precious metal content, whether in coin, bar, or ingot form.
The Sound Money Defense League helped make the case to West Virginia legislators, explaining why charging sales taxes on money itself is beyond the pale. In effect, those states that collect taxes on purchases of precious metals are inherently saying gold and silver are not money at all.
“West Virginia’s legislature has taken a huge step forward with the passage of SB 502. Thanks to the efforts of Senator Blair and other groups, Governor Justice can sign a measure eliminating obstacles in the way of West Virginia citizens to protect themselves from the inflationary practices of the Federal Reserve,” said Jp Cortez, Policy Director of the Sound Money Defense League.
The Sound Money Defense League has pointed out that charging sales taxes on purchasing the monetary metals is tantamount to charging an 80-cent tax after asking a gas station attendant to change a 20-dollar bill.
Assuming the governor signs SB 502, effective on July 1, 2019, West Virginia would join the ranks of the 38 other states that have elected to reduce or eliminate sales taxation on gold and silver. Other states have advanced legislation to eliminate income taxation on gold and silver (Arizona, Utah, and Idaho) or setting up precious metals depositories to help citizens save and transact in gold and silver bullion (Texas and Tennessee).
Learn more about what states are doing to promote sound money policies here.