2023 STATE OF MICHIGAN Bill: _________

Specie Legal Tender Act

Sponsored by:

A BILL For

AN ACT authorizing the acceptance of certain specie legal tender for tax payments and remittances and empowering the state treasurer by rule and regulation to implement the same.

The People of the State of Michigan enact:

Section 1. § Specie Legal Tender is enacted to read as follows:

This chapter shall be known and may be cited as the “Legal Tender Act.”

Section 2. § Definitions for Specie Legal Tender is enacted to read as follows:

For purposes of this chapter:

1. “Legal tender” means a medium of exchange, including specie, that is authorized by Congress or by any state pursuant to Article I §8 or §10, respectively, of the United States Constitution, for the payment of debts, public charges, taxes or dues.

2. “Specie” means coin, bullion, note, leaf, foil or film having at least 50% gold or silver content, in whatever form, not inclusive of any holder, polymer coating, or encasement, whether protective, decorative or authenticating.

3. “Specie legal tender negotiable instrument” means a writing specifying a particular weight of specie legal tender payable to the bearer on demand in exchange for surrender of the instrument.

Section 3. § Specie Legal Tender is enacted to read as follows:

Specie legal tender shall consist of:

1. Specie coin, bullion, note, leaf, foil, or film issued by the United States government at any time;

2. Specie coin, bullion, note, leaf, foil or film issued by any foreign government at any time;

3. Any other specie that a court of competent jurisdiction, by final and unappealable order, rules to be within state authority to make or designate as legal tender.

 

 

Section 4. § Specie Legal Tender Tax Exemption is enacted to read as follows:

1. No specie, specie legal tender or specie legal tender negotiable instrument shall be characterized as personal property for the purposes of property taxation.

2. The exchange of one type or form of legal tender or specie legal tender negotiable instrument for another type or form of legal tender or specie legal tender negotiable instrument shall not give rise to any tax liability of any kind whatsoever.

Section 5. § Specie Legal Tender Tax Receipts is enacted to read as follows:

The state treasurer shall by rule or regulation to implement the acceptance and retention of tax payments or remittances in specie legal tender by:

1. Authorizing, for the payment or remittance of state and local taxes, particular specie legal tender (other than that already authorized by Congress) together with specie legal tender negotiable instrument therefor;

2. Setting exchange rates between legal tender currencies for the purpose of calculating tax payment and remittance amounts due;

3. Holding specie legal tender tax receipts, or placing the same into positive carry instruments paying an annual return, including precious metal leases and bonds; and

4. Contracting with reputable, vetted, and adequately insured, precious metals service providers to assist in implementing the foregoing and, where possible, deriving revenue beyond tax receipts for state or local government therefrom.

Section 6. This act is effective _________ 1, 20___.

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