Arizona Gov. Jan Brewer Thursday vetoed Senate Bill 1439 which would have made Arizona the second U.S. state to recognize gold and silver as legal tender.
In a letter to Arizona State Senate President Andy Biggs, Brewer said, “While I believe the concern over a devalued dollar as a result of an unsustainable federal deficit is justified, I am unable to support this legislation.”
“I believe the provisions in this legislation need to be more carefully examined and there should be prior coordination with those government agencies tasked with the oversight of these transactions,” she stressed.
“For example, it is unclear whether this legislation would require Arizona to exempt income tax related to a transaction involving collectable coins or bills that were originally authorized by Congress and may be used as legal tender,” Brewer said. “This would result in lost revenues to the state, while giving businesses that buy and sell collectible coins or currency originally authorized by Congress an unfair tax advantage.”
State Senator Chester Crandell, the bill’s sponsor, said the ability to use gold and silver is still a work in progress and that more legislation would be needed before it could be viable.
The Arizona Legislature could chose to over-ride the governor’s veto of SB 1439. However, a 2/3 vote is required by each chamber—House and Senate—to over-ride her veto. However, the Republican controlled Senate only approved the measure by an 18-10 vote.
The governor’s veto means that Utah remains the only U.S. state which has approved gold and silver as legal tender. However, similar bills are advancing in several states.