Regards use and taxation of bullion or specie
The proposed legislation introduces significant changes to how the state's financial obligations can be settled. By allowing payment in the form of precious metals, it aims to broaden the options available for taxpayers, potentially making it easier for individuals who hold bullion to fulfill their tax or debt obligations. The exemption of capital gains taxes on the sale or exchange of bullion or specie adds to this appeal, as it could encourage individuals to invest in these commodities without the penalty of increased taxation upon selling them.
House Bill 481 seeks to amend existing sections of the Ohio Revised Code and enact a new section concerning the acceptance of bullion or specie as payment for debts, including taxes and fees owed to the state. Specifically, the bill specifies that the Treasurer of the State must accept allocated bullion or specie, defined as refined precious metals such as gold and silver, but not unallocated bullion or derivative forms. Additionally, the bill mandates that the Treasurer maintain an amount of bullion or specie equal to at least two percent of all state funds, which would be categorized as public moneys.
Despite its potential benefits, the bill may face contention regarding the viability and practicality of accepting precious metals as a standard form of payment. Critics may argue that it could complicate state financial transactions and raise concerns about the fluctuating value of precious metals, which could affect revenue stability for the state. Moreover, discussion surrounding the broader implication of detaching state finances from the conventional fiat currency system could foster debate about economic stability and regulatory concerns.