Tuesday, March 8, 2011

Utah Bill Would Allow U.S. Gold Coins To be Legal Tender There

1904 Double Eagle
1924 Double Eagle- St. Gaudens
1933 double eagle, front and back, coin 1

1933 Double eagle

The U.S. was on the Gold Standard from 1873 to 1933. Then, Franklin Roosevelt recalled United States Gold Coins in 1933. Private ownership was outlawed unless the coins had a clearly collectible value. This created a new era in coin collecting. Nixon later stopped the U.S. from redeeming dollars for gold in 1971. 


Three hundred thousand 1933 Gold Double eagles were minted, but they were never officially released and were doomed to destruction. The few 1933 Double Eagles that weren’t destroyed and wound up in private hands are worth millions. One owned by Egypt’s King Farouk was confiscated by his new government when his reign ended, but wound up in private hands.  When it was put up for auction, our Secret  Service stepped in and confiscated it. But, lawsuits happened, and there was an agreement for it to be sold, and the owner and the U.S. Government split the proceeds 50/50.  The sale price was 7.2 Million Dollars. 

Due to uneasiness over the economy, the Utah House has just voted to recognize the Federal Government’s gold and silver coins as legal currency in the state. It would still have to pass the Senate and be signed by the Governor to become law. It may surprise some that it isn’t legal tender; however, in reality anyone would jump at taking gold and silver coins as payment for debts, goods, and services. It still is de facto currency. The question is how the coins would be valued. The coins won’t replace the current fiat currency, and their use is voluntary.  

The coins would be exempted from capital gains taxes there. Utahans could pay their taxes and other obligations with gold. It also may come as a surprise that twelve other states including Georgia, Montana, Missouri, Colorado, Indiana, Iowa, New Hampshire, South Carolina, Tennessee, Washington, Vermont and Oklahoma are considering similar bills.

Congressman Ron Paul is applauding the state’s effort.  On the other hand, Ben Bernanke has said that gold can’t return as the world standard because there’s not enough gold to do so.
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Here's the bill



First Substitute H.B. 317

Representative Brad J. Galvez proposes the following substitute bill:


             1     
CURRENCY AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Brad J. Galvez

             5     
Senate Sponsor: Scott K. Jenkins

             6      
             7      LONG TITLE
             8      General Description:
             9          This bill recognizes gold and silver coins that are issued by the federal government as
             10      legal tender in the state and exempts the exchange of the coins from certain types of
             11      state tax liability.
             12      Highlighted Provisions:
             13          This bill:
             14          .    provides definitions;
             15          .    recognizes gold and silver coins issued by the federal government to be legal tender
             16      in the state;
             17          .    does not compel a person to tender or accept gold and silver coin;
             18          .    provides that the exchange of gold and silver coins for another form of legal tender
             19      does not create any individual income or sales tax liability;
             20          .    requires the Revenue and Taxation Interim Committee to:
             21              .    study the possibility of establishing an alternative form of legal tender;
             22              .    recommend whether an alternative form of legal tender should be established;
             23      and
             24              .    prepare any recommended legislation for the 2012 General Session; and
             25          .    enacts an uncodified severability clause.

             26      Money Appropriated in this Bill:
             27          None
             28      Other Special Clauses:
             29          None
             30      Utah Code Sections Affected:
             31      AMENDS:
             32          59-10-1002.2, as renumbered and amended by Laws of Utah 2008, Chapter 389
             33      ENACTS:
             34          59-1-1501, Utah Code Annotated 1953
             35          59-1-1502, Utah Code Annotated 1953
             36          59-1-1503, Utah Code Annotated 1953
             37          59-1-1504, Utah Code Annotated 1953
             38          59-10-1025, Utah Code Annotated 1953
             39      Uncodified Material Affected:
             40      ENACTS UNCODIFIED MATERIAL
             41      
             42      Be it enacted by the Legislature of the state of Utah:
             43          Section 1. Section 59-1-1501 is enacted to read:
             44     
Part 15. Legal Tender Act

             45          59-1-1501. Title.
             46          This part is known as the "Legal Tender Act."
             47          Section 2. Section 59-1-1502 is enacted to read:
             48          59-1-1502. Gold and silver coin.
             49          (1) Gold and silver coin issued by the federal government is legal tender in the state.
             50          (2) A person may not compel any other person to tender or accept gold and silver coin
             51      that is issued by the federal government.
             52          Section 3. Section 59-1-1503 is enacted to read:
             53          59-1-1503. Nonrefundable credit -- Sales tax exemption.
             54          (1) There is a nonrefundable credit established for any capital gains incurred from the
             55      exchange of gold and silver coin issued by the federal government for another form of legal
             56      tender as provided in Section 59-10-1025 .

             57          (2) The exchange of gold and silver coin issued by the federal government for another
             58      form of legal tender is exempt from sales and use taxes as provided in Subsection
             59      59-12-104 (50).
             60          Section 4. Section 59-1-1504 is enacted to read:
             61          59-1-1504. Revenue and Taxation Interim Committee study.
             62          The Revenue and Taxation Interim Committee shall during the 2011 interim:
             63          (1) study the possibility of establishing an alternative form of legal tender for the
             64      payment of debts, public charges, taxes, and dues within the state;
             65          (2) recommend whether legislation should be drafted to establish an alternative form of
             66      legal tender; and
             67          (3) prepare any legislation that the Revenue and Taxation Interim Committee
             68      recommends in accordance with Subsection (2) for consideration by the Legislature during the
             69      2012 General Session.
             70          Section 5. Section 59-10-1002.2 is amended to read:
             71           59-10-1002.2. Apportionment of tax credits.
             72          (1) A nonresident individual or a part-year resident individual that claims a tax credit
             73      in accordance with Section 59-10-1017 , 59-10-1018 , 59-10-1019 , 59-10-1021 , 59-10-1022 ,
             74      59-10-1023 , [or] 59-10-1024 , or 59-10-1025 may only claim an apportioned amount of the tax
             75      credit equal to:
             76          (a) for a nonresident individual, the product of:
             77          (i) the state income tax percentage for the nonresident individual; and
             78          (ii) the amount of the tax credit that the nonresident individual would have been
             79      allowed to claim but for the apportionment requirements of this section; or
             80          (b) for a part-year resident individual, the product of:
             81          (i) the state income tax percentage for the part-year resident individual; and
             82          (ii) the amount of the tax credit that the part-year resident individual would have been
             83      allowed to claim but for the apportionment requirements of this section.
             84          (2) A nonresident estate or trust that claims a tax credit in accordance with Section
             85      59-10-1017 , 59-10-1020 , 59-10-1022 , [or] 59-10-1024 , or 59-10-1025 may only claim an
             86      apportioned amount of the tax credit equal to the product of:
             87          (a) the state income tax percentage for the nonresident estate or trust; and

             88          (b) the amount of the tax credit that the nonresident estate or trust would have been
             89      allowed to claim but for the apportionment requirements of this section.
             90          Section 6. Section 59-10-1025 is enacted to read:
             91          59-10-1025. Nonrefundable tax credit for capital gain transactions on the
             92      exchange of gold and silver coin for another form of legal tender.
             93          (1) As used in this section:
             94          (a) "Capital gain transaction" means a transaction that results in a:
             95          (i) short-term capital gain; or
             96          (ii) long-term capital gain.
             97          (b) "Long-term capital gain" is as defined in Section 1222, Internal Revenue Code.
             98          (c) "Short-term capital gain" is as defined in Section 1222, Internal Revenue Code.
             99          (2) Except as provided in Section 59-10-1002.2 , for taxable years beginning on or after
             100      January 1, 2012, a claimant, estate, or trust may claim a nonrefundable tax credit equal to the
             101      product of:
             102          (a) to the extent a capital gain is not offset by a capital loss under Chapter 1,
             103      Subchapter P, Capital Gains and Losses, Internal Revenue Code, the total amount of the
             104      claimant's, estate's, or trust's short-term capital gain or long-term capital gain on a capital gain
             105      transaction from an exchange made on or after January 1, 2012, of gold or silver coin issued by
             106      the federal government for another form of legal tender; and
             107          (b) 5%.
             108          (3) A claimant, estate, or trust may not carry forward or carry back a tax credit under
             109      this section.
             110          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             111      commission may make rules to implement this section.
             112          Section 7. Severability clause.
             113          If any section of this bill or the application of any section of this bill to any person or
             114      circumstance is held invalid by a final decision of a court of competent jurisdiction, the
             115      remainder of this bill shall be given effect without the invalid section or application. The
             116      provisions of this bill are severable.

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2 comments:

itm said...

The American Eagle Gold Bullion Coin is the best-selling gold bullion coin in the world. As the United States Mint prominently mentions in all of its marketing literature, each and every American Eagle is guaranteed by the U.S. government for weight, content and purity. When it comes to buying gold coins, the American Eagle tops them all.
us mint gold coins

leesa jhon said...

Military Challenge Coins
Hmm! Nice coins but want to say now days i think peoples are converting to silver coins because the gold coins are too much expensive.