Mississippi Senate Bill SB2966

Mississippi 2023 Regular Session

• Introduced: 2/13/23
• Refer: 2/13/23
• Failed: 2/22/23

Caption

Gold and silver bullion; exempt sales from taxation and capital gain and require State Treasurer to invest.

Impact

The implications of SB2966 on state laws are multifaceted. By exempting capital gains taxes associated with gold and silver bullion, the bill provides a lucrative opportunity for investors, potentially increasing the trade volume of these metals within Mississippi. Furthermore, the sales tax exemption is expected to attract more buyers, promoting economic activity related to precious metals. The establishment of the Mississippi Bullion Depository as an agency of the state treasury aims to facilitate these investments and enhance security for state-held bullion assets. This can ultimately lead to an expansion of state revenues generated through increased investments in precious metals.

Summary

Senate Bill 2966 proposes significant changes to the treatment of gold and silver bullion within Mississippi's tax framework. It seeks to amend existing state laws to exempt capital gains on the sale or exchange of gold and silver bullion from state income tax, which would effectively incentivize investment in precious metals. Additionally, the bill proposes to exempt the sales of investment-grade gold and silver bullion from Mississippi sales tax, thereby increasing the appeal for both consumers and investors looking to purchase these forms of assets without additional tax liabilities. This exemption aims to foster a more favorable market for precious metals within the state.

Contention

While the bill presents numerous benefits, it may also attract contention, particularly from those who argue about the implications of such tax exemptions on state revenue. Critics might express concern over the fairness and potential loss of revenue from existing taxation policies, particularly in challenging economic times. Additionally, there could be debate among legislators about prioritizing investment in precious metals over other public needs. The establishment of the Mississippi Bullion Depository may also raise questions regarding its management and the associated costs involved in maintaining such an entity.