On March 13, 2024, Representative Josh Schriver introduced HB-5577 (Text in Bold is what is being added).
This bill if passed will amend the "Income Tax Act of 1967" by amending section 30 of the act. It would remove the adjusted gross income and capital gains tax from the "sale of exchange of investment coins and bullion." The act will also remove any deducted taxes for "net capital loss from the sale or exchange"
However, we shouldn't get our hopes up. Even if this bill passed it would not change the status for Goldbacks. This is due to how the bill defines Bullion and Investment coins. As in Subpart A Bullion is defined: as " gold, silver, or platinum in a bulk state, where its value depends on its content rather than its form, with a purity of not less than 900 parts per 1,000" (Bold added) By tying this directly to it's gold value it eliminates Goldback from the discussion as their exchange value is well over their Gold value. The very nature of the Goldbacks and why I and others are interested in them is because of their form. It's not just gold it's gold in a highly convenient and counterfeit-proof method.
Secondly, you might be asking isn't this a coin? Don't they say "Speice legal tender" on them? You would be right, but under Subpart B, investment coins mean: "numismatic coins or other forms of money and legal tender manufactured of gold, silver, platinum, palladium, or other metal and issued by the United States government or a foreign government with a fair market value greater than the face value of the coins." (Bold Added) This language also eliminates the Goldback from the discussion as the United States or a Forgin Sovergin does not issue them. Local states while they can recognize Gold and Silver as money are forbidden to coin money under Federal Constitution Art. 1, sec. 10 where it says: "No state shall... coin money..".
The question to my mind is whether this amendment is even needed for the United States minted gold and silver. As MCL. 21.153 lays out forms of tender that must be accepted by "receiving officers" for obligations due to the state. In the second half of the section, it states: "No receiving officer shall be required to receive in payment of any debt, taxes or other obligation collectible or receivable by him any tender other than gold or silver coin of the United States, United States treasury notes, gold certificates, silver certificates or federal reserve bank notes." (Bold Added) If the state theoretically accepts these coins for payment there should be no sales or capital gains tax on them to begin with. However, I can't find one instance of anyone trying this is our time. This could be due to the fact that as of today a US-minted Silver Eagle is $35.24 from SD Bullion and the value on the coin only says "One Dollar". Who in their right mind would buy a coin for $35 and turn around and try to use it for $1?
Make sure to reach out to House Representative Josh Schriver.
Lansing Office
Anderson House Office BuildingS-1085 House Office BuildingLansing, MI 48933
Mailing Address
S-1085 House Office BuildingP.O. Box 30014Lansing, MI 48909
Phone: (517) 373-0839
Email: JoshSchriver@house.mi.gov
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