POLITICAL ECONOMY

Arizona could soon approve gold, silver as legal tender

After being rejected by three state legislatures this year, a measure to recognize U.S. Government-minted gold and silver coins as legal tender may find a second home in Arizona.

RENO (Mineweb) - 

Arizona could soon become the second U.S. state to recognize gold and silver as legal tender if the Arizona House approves SB 1439.

The bill has already won the approval of Arizona’s State Senate and the Arizona House Financial Institutions Committee which voted the legislation out of committee on a 4-2 vote Monday. The measure now goes to a vote of the Arizona House.

Thus far, only the State of Utah has officially recognized gold and silver as legal tender, (See: Gold, silver coins now officially legal tender in Utah) although the issue has been under consideration this year in four states including Arizona. The Arizona bill defines legal tender as a mode of paying debts and taxes.

The measure also states that any coin or bullion that has gold or silver content and is issued by the United States Government can be defined as legal tender. However, no one can be compelled to accept coin or bullion containing gold or silver. The measure would also mandate that coin or bullion containing gold or silver issued by the U.S. Government cannot be taxed as property since it is to be considered money.

RELATED PODCAST: The practicalities of gold and silver as legal tender - Danker

If the Arizona Legislature enacts SC 1439 and Republican Gov. Jan Brewer signs the measure into law, gold and silver would go into effect as legal tender in the state in 2014.

However, House Joint Resolution No. 590 --which would have established a joint subcommittee to study whether the Commonwealth of Virginia should adopt a rule recognizing gold or silver billion or gold or silver coin authorized by the U.S. Government as legal currency—died in the Virginia General Assembly’s State Senate last month.

In January the South Dakota Legislature rejected House Bill 1100 which would have made U.S. Government-minted gold and silver coins legal tender that could be used to pay state taxes at their market value.

Meanwhile, Senate Bill 99, Indiana’s version of recognizing U.S.-issued gold and silver coins as legal tender, appears to be buried in the Indiana State Senate Committee on Tax and Fiscal Policy.

SEE ALSO: Sprott on banks, gold and silver – mania, manipulation and meltdown

The organizations, the Gold Standard Institute and American Principles in Action, have both championed state efforts to rule gold and silver legal tender.

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