Which States Are Embracing Gold?

All the smart ones

Washington State just made gold and silver bullion subject to sales tax. Here’s a video with all the sordid details:

This kind of law presents local stackers with the question of how they’re supposed to buy or sell gold when taxes take such a big bite out of the proceeds. The most obvious answer: Travel to one of the (much more numerous) states that treat precious metals with the respect they deserve.

Florida, for instance, just did the exact opposite of Washington by making gold (and silver!) tax-exempt legal tender starting in 2026. The details:

Florida’s Gold and Silver Legal Tender Law Explained

(Discovery Alert) - Florida stands positioned to make monetary history through groundbreaking legislation that would establish gold and silver legal tender in Florida as a legitimate alternative to traditional currency systems. This pioneering law, scheduled to take effect on July 1, 2026, represents a fundamental shift toward constitutional money principles and offers residents viable alternatives to traditional fiat currency systems.

The proposed system creates a voluntary participation structure where businesses and individuals may choose to accept precious metal coins for various payment obligations. This includes transactions for goods and services, debt settlements, tax payments, and government fees.

While acceptance remains optional rather than mandatory, the legislation provides comprehensive legal protection for participants in precious metal commerce. This framework addresses liability concerns that previously deterred businesses from accepting alternative currencies.

Implementation guidelines include real-time valuation protocols to address price fluctuations inherent in precious metals markets. Moreover, the system incorporates established precious metals exchanges for reference pricing, ensuring fair market value determination at transaction points, which aligns with broader gold-stock market dynamics.

The legislation also addresses authentication concerns by requiring standardised certification processes for precious metal transactions. This includes provisions for third-party verification services and established protocols for dispute resolution in cases of questionable coin authenticity.

Complete Sales Tax Exemption

The most significant economic advantage of Florida’s precious metals legislation involves the complete elimination of sales tax on qualifying gold and silver coin transactions. This exemption applies universally, regardless of transaction size, removing previous minimum purchase thresholds that historically limited tax benefits to larger institutional buyers.

Current Florida sales tax rates range from 6% to 8.5% depending on local municipal additions. For precious metals investors, this exemption represents substantial cost savings, particularly for frequent traders or those making significant acquisitions.

The legislation also addresses use tax implications, ensuring that Florida residents cannot be subjected to taxation on precious metals purchased in other jurisdictions but used within state boundaries.

Ohio Might Go Even Further:

‘Pirate money’ at the Statehouse? Ohio lawmakers pitch gold-backed currency

(Cleveland.com) - Ohioans could soon be using “pirate money” to buy their morning cup of coffee.

That’s how Rep. Jennifer Gross, a Butler County Republican, jokingly described her proposal to create a “transactional currency” backed by gold and silver.

House Bill 206 wouldn’t have Ohioans hauling around gold doubloons. Payments would run through debit cards or phone apps tied to bullion held by the state treasurer in a secure depository.

“You don’t know unless I say, ‘Hey, look, I’m using gold to buy your coffee,’” Gross said.

Under the bill, the treasurer would contract with a private company or an approved bullion depository to hold the gold and silver that back the new currency.

People could buy in with regular U.S. dollars, then use their accounts to make purchases, withdraw cash or convert their balance to precious metals.

At the point of sale, gold or silver would automatically convert into dollars — the same way your bank converts money into pounds, euros, or yen when you buy something from overseas.

Gross and Wyandot County Republican Rep. Riordan McClain told the House Finance Committee their bill is about “choice and freedom.”

What About Other States?

A growing number of states now treat gold and silver as money and/or exempt them from sales taxes. Here’s a partial list:

• Idaho

• Iowa

• Kansas

• Kentucky

• Louisiana

• Mississippi

• Montana

• Nebraska

• New Hampshire

• North Carolina

• North Dakota

• Ohio

• South Carolina

• South Dakota

• Tennessee

• Virginia

• West Virginia

• Wisconsin

These Laws Vary

From LegalClarity.org:

The recognition of gold and silver as legal tender by states often includes provisions to facilitate their use and reduce tax burdens. A common provision is the exemption from sales tax on transactions involving precious metals. For instance, Utah’s Legal Tender Act, Utah Code Section 59-1-1501, exempts sales tax on precious metals and allows for the payment of state debts and taxes with gold and silver coins.

Arizona’s House Bill 2014 eliminated state capital gains taxes on income derived from the exchange of one form of legal tender for another. This means that if gold or silver coins are exchanged for federal currency, any nominal gain due to inflation is not subject to state capital gains tax. Wyoming’s Legal Tender Act specifies that specie is not subject to property taxation and that its exchange for other forms of legal tender does not create tax liability.

Oklahoma’s Legal Tender Act, Oklahoma Statutes Section 1001, also exempts sales tax on precious metals and treats them as legal tender. The primary impact of these laws is often to remove tax disincentives, such as sales or capital gains taxes, that might otherwise hinder the use or holding of precious metals as a form of money.

The Trend is Our Friend

Washington state is clearly an outlier when it comes to precious metals. So Washington stackers needn’t stress. Just plan the occasional road trip to…pretty much anywhere else, and do your transacting there. Happy trails!