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SENATE BILL NO. 162
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY SENATOR CRONK
Introduced: 4/9/25
Referred: State Affairs, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to specie as legal tender in the state; and relating to borough and city 1
sales and use taxes on specie." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 29.10.200(56) is amended to read: 4
(56) AS 29.45.650(c), (d), (e), (f), (i), (j), (k), [AND] (l), and (m)
5
(sales and use tax); 6
* Sec. 2. AS 29.10.200(57) is amended to read: 7
(57) AS 29.45.700(d), (e), (g), [AND] (h), and (i) (sales and use tax); 8
* Sec. 3. AS 29.45.650(a) is amended to read: 9
(a) Except as provided in AS 04.21.010(c), AS 29.45.750, and in (f), (h), (i), 10
(j), (k), [AND] (l), and (m) of this section, a borough may levy and collect a sales tax 11
on sales, rents, and services provided in the borough. The sales tax may apply to any 12
or all of these sources. Notwithstanding other statutes, exemptions may be granted by 13
ordinance. A borough may wholly or partially exempt a source from a borough sales 14 34-LS0873\A
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tax that is taxed by a city in that borough under AS 29.45.700. 1
* Sec. 4. AS 29.45.650 is amended by adding a new subsection to read: 2
(m) A borough may not levy or collect a sales or use tax on the sale or 3
exchange of specie. This subsection applies to home rule and general law 4
municipalities. In this subsection, "specie" has the meaning given in AS 44.12.400(d). 5
* Sec. 5. AS 29.45.700(a) is amended to read: 6
(a) A city in a borough that levies and collects areawide sales and use taxes 7
may levy sales and use taxes on all sources taxed by the borough in the manner 8
provided for boroughs. Except as provided in (d), (e), (g), [AND] (h), and (i) of this 9
section, the assembly may by ordinance authorize a city to levy and collect sales and 10
use taxes on other sources. 11
* Sec. 6. AS 29.45.700 is amended by adding a new subsection to read: 12
(i) A city may not levy or collect a sales or use tax on the sale or exchange of 13
specie. This subsection applies to home rule and general law municipalities. In this 14
subsection, "specie" has the meaning given in AS 44.12.400(d). 15
* Sec. 7. AS 44.12 is amended by adding a new section to read: 16
Article 5. Legal Tender. 17
Sec. 44.12.400. Legal tender. (a) To the fullest extent allowed by art. I, sec. 18
10, clause 1, of the Constitution of the United States, legal tender in the state includes 19
specie issued by 20
(1) the federal government at any time if the federal government 21
considers the specie legal tender; 22
(2) a foreign government if, at the time of a sale or exchange, the 23
foreign government considers the specie legal tender and the foreign government is 24
(A) recognized by the United States Department of State as 25
being the legitimate government of a country whose existence is recognized by 26
the United States and has not been designated as a foreign adversary under 27
federal law or regulation; 28
(B) a subnational unit of a government described in (A) of this 29
paragraph that is authorized by the laws of that government to issue its own 30
currency; or 31 34-LS0873\A
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(C) an international currency union made up exclusively of 1
countries described in (A) of this paragraph; or 2
(3) the state government if 3
(A) a court of competent jurisdiction, by final and unappealable 4
order, ruled the specie to be within state authority to designate as legal tender; 5
and 6
(B) the state government considers the specie legal tender. 7
(b) A person is not required to accept gold or silver specie as tender. 8
(c) The Legislative Budget and Audit Committee shall study the possibility of 9
establishing additional forms of legal tender for the payment of debts, including public 10
charges, taxes, and other money owed to the state. If the committee determines that 11
additional forms of tender are practical and beneficial, the committee shall prepare 12
legislation establishing an additional form of legal tender for introduction. 13
(d) In this section, 14
(1) "legal tender" means a recognized medium of exchange for the 15
payment of debts; 16
(2) "specie" means gold or silver valued primarily based on its metal 17
content and in the form of 18
(A) coin; or 19
(B) bullion that is stamped or imprinted with its weight and 20
purity. 21