Utah ponders new gold legislation...

[chrikenn]

http://www.foxnews.com/politics/2011/03 ... ver-coins/

Summary: Utah is considering passing a bill allowing gold and silver to officially be used as currency there.  Bill would also eliminate the state's capital gains tax on gold.

Thoughts?  Could those more informed than I am wager a guess as to whether this would be good or bad for gold for purposes of the PP?

[chrikenn]

House passed the bill today: http://www.foxnews.com/politics/2011/03 ... al-tender/

[fnord123]

I don't understand the significance of this - according to the mint web page, Gold American Eagles at least already are "legal tender" - see http://www.usmint.gov/mint_programs/ame ... eagle_gold and search for "legal tender".

I sure would not want to hand over a GAE for $20 in groceries (although I'll happily sell $20 in groceries to anybody for a GAE, from Utah or otherwise!)

[Gumby]

I don't understand the significance of this - according to the mint web page, Gold American Eagles at least already are "legal tender" - see http://www.usmint.gov/mint_programs/ame ... eagle_gold and search for "legal tender".

I sure would not want to hand over a GAE for $20 in groceries (although I'll happily sell $20 in groceries to anybody for a GAE, from Utah or otherwise!)

The coins have a legal tender face value, but it sounds like the bill is trying to find a way to make the elemental value of the coins become legal tender somehow through some kind of future gold/silver currency or exchange system. If nothing else, the bill eliminates state taxes and uses legal tender as an excuse for eliminating those taxes. But, that's just how I read it. I could be entirely wrong.

From First Substitute H.B. 317: Currency Amendments:

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.