Why we moved to Utah – Utah Legal Tender Act – Article 1 Section 10 of the U.S. Constitution
We have recently moved our facility and operations center from New Hampshire to beautiful Saint George, Utah! It wasn’t because Zion National Park is in our backyard, with its spectacular panoramic views. Or because an hour beyond that is Bryce Canyon with its colorful red rocks that point upwards to the sky like a Martian landscape. It was actually because of politics! Whatever your political views are, Utah is at the forefront of treating Gold and Silver coins, rounds, bars and bullion as legal tender.
Introduced as HB317 by State Representative Brad J. Galves, this bill which later passed as The Utah Legal Tender Act recognizes gold and silver as a form of tender that allows individuals to transact without paying capital gains tax. This has important implications and the legislative process had cited this important section of the U.S. Constitution.
Article 1 – The Legislative Branch
Section 10 – Powers Prohibited of States
“No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.
No State shall, without the Consent of Congress, lay any duty of Tonnage, keep Troops, or Ships of War in time of Peace, enter into any Agreement or Compact with another State, or with a foreign Power, or engage in War, unless actually invaded, or in such imminent Danger as will not admit of delay.”
What’s this mean for me?
Well, under the act, exchanging Precious Metals for an alternative form of legal tender makes it exempt from tax. Think of it this way, if you were to exchange a $20 bill for 80 quarters, the Government does not take a quarter for the exchange. This is because you can’t tax tender. Now, this has very little effect on the pricing of gold so far but seems to give a little more value and purchasing power that Precious Metals once had.