Tennessee House Bill HB1481

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/23
• Refer: 2/2/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7; Title 9; Title 38; Title 45 and Title 67, relative to precious metals.

Impact

The impact on state laws is profound as it shifts the framework surrounding what constitutes acceptable currency. By mandating that gold and silver be legally accepted, the bill alters existing statutes that govern monetary transactions and tax payments. For instance, the bill stipulates that state taxes can be paid using gold or silver coinage, thereby expanding the options available to taxpayers and reshaping accountability measures regarding tax collections in precious metals. Furthermore, the possession of gold and silver is safeguarded from seizure, which could affect law enforcement's ability to intervene in transactions involving these currencies, thereby heightening the importance of regulatory safeguards in handling such exchanges.

Summary

House Bill 1481 introduces significant amendments to the Tennessee Code Annotated with respect to the acceptance and regulation of gold and silver coinage. Under this bill, gold and silver coinage would be recognized as legal tender, which must be accepted at spot prices for payment of debts public or private. This proclamation aims to bolster the use of precious metals within the state’s economy and could encourage a resurgence in transactions using these forms of currency. Notably, any costs incurred from verification of the weight and purity of coins would be the responsibility of the entity receiving the coinage, which brings forth additional logistical considerations for businesses and individual transactions.

Contention

Debate concerning HB1481 may focus on its implications for financial transactions and the overall economic climate of Tennessee. Critics could argue that recognizing precious metals as legal tender could complicate tax policies and revenue forecasting, as the valuation of gold and silver can fluctuate substantially. Additionally, the legislative move may face scrutiny over whether encouraging the use of physical coinage aligns with a modern economy increasingly leaning towards digital transactions. Proponents, on the other hand, may view the bill as a necessary measure to restore a form of currency that affords individuals greater control over their financial autonomy. Ultimately, the legislation could become a focal point of broader discussions regarding monetary policy and local versus central banking authority.