LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6415 NOTE PREPARED: Dec 14, 2023
BILL NUMBER: HB 1043 BILL AMENDED:
SUBJECT: Gold and Silver as Legal Tender.
FIRST AUTHOR: Rep. Ledbetter BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: Legal Tender - The bill defines "specie" as: (1) coin having gold or silver content;
or (2) refined gold or silver bullion. It provides that the following specie are recognized as legal tender in
Indiana ("specie legal tender"):
(1) Specie coin that is issued by the United States government or by a foreign government at any
time.
(2) Any other specie that a United States court, in a final nonappealable judgment, determines to be
within state authority to make or designate as legal tender under the Constitution of the United
States.
The bill provides that except as otherwise specifically provided by law or contract, a person may not compel
any other person to tender or accept specie as legal tender. The bill provides that a prevailing party in an
action for breach of any contract provision that specifically provides for a type or form of specie as tender,
regardless of whether the specie is recognized as legal tender in Indiana, is entitled to specific performance
of the contract provision.
Tax Exemption - The bill provides that specie and specie legal tender: (1) are not subject to assessment and
taxation under Indiana's property tax statute; and (2) are exempt from the state gross retail tax.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Summary - A state agency would incur additional costs if it chose to
accept specie for certain transactions. The initial investment in the necessary resources would likely be
significant.
HB 1043 1 Additional Information - The bill allows gold or silver coins and bullion issued by the United States, foreign
governments, or other forms that a United States court determined could be designated as legal tender to be
legal tender in Indiana. The bill does not compel a person to accept or tender specie as legal tender unless
otherwise specifically provided by law or contract. Under the Uniform Commercial Code, a person is an
individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint
venture, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial
entity.
Explanation of State Revenues: Tax Exemption - This provision expands the existing sales tax exemption
on certain coins and bullion to include all specie. This provision will decrease sale tax collections by an
indeterminable but likely significant amount. It is unknown how much additional products would be
purchased that do not currently qualify for the existing exemption, but the existing exemption is estimated
to reduce annual collections by $5.2 M. [Sales Tax revenue is deposited in the General Fund (99.838%),
Commuter Rail Service Fund (0.131%), and Industrial Rail Service Fund (0.031%).]
Explanation of Local Expenditures: Legal Tender - A local unit would incur additional costs if it chose
to accept specie for certain transactions. The initial investment in the necessary resources would likely be
significant.
Explanation of Local Revenues: Tax Exemption - This provision should have no impact on property tax
collections.
State Agencies Affected: All
Local Agencies Affected: All
Information Sources: Indiana Department of State Revenue, Sales Tax Information Bulletin #50, Sales of
Coins, Bullion, or Legal Tender, https://www.in.gov/dor/files/sib50.pdf; Legislative Services Agency, 2022
Indiana Tax Expenditure Review,
https://s3.us-east-2.amazonaws.com/iga-publications/tax_expenditure_report/2023-06-22T17-16-33.740Z
-2022%20Tax%20Expenditure%20Review.pdf
Fiscal Analyst: Heath Holloway, 317-232-9867.
HB 1043 2