Juneau, AK — Gold and silver coins and bullion are one step closer to being recognized as legal tender in Alaska after the House of Representatives passed House Bill 1 by Rep. Kevin McCabe, R-Big Lake, today in a 40-0 vote.
The bill, co-sponsored by 20 other legislators, seeks to provide greater financial freedom and transactional clarity for Alaskans who choose to utilize precious metals in commerce. The legislation also addresses how local sales and use taxes apply to specie transactions while expanding the mediums of exchange available to Alaskans.
“No merchant has to accept specie. No Alaskan has to use it. It’s an option, not a mandate,” Rep. McCabe said. “It costs the treasury nothing. Forty-six states are considering it or have already accepted specie as legal tender.”
HB 1 recognizes gold and silver specie, defined as coins or stamped bullion valued for their metal content, as legal tender in Alaska. The bill aligns with Article I, Section 10 of the U.S. Constitution while preserving private choice by not requiring any individual or business to accept specie in transactions.
HB 1 also creates clearer tax treatment surrounding specie transactions by prohibiting municipal sales and use taxes on the sale or exchange of specie, removing financial barriers for Alaskans seeking alternatives to traditional currency during periods of economic uncertainty.
Gold and silver have held value for thousands of years and were recognized by the Founders as lawful money. HB 1 helps protect Alaskans who choose to use specie in voluntary transactions while reinforcing sound money principles and economic freedom.
“Alaskans understand the importance of self-determination and financial independence,” Rep. McCabe said. “This legislation is about giving people more choices and recognizing the enduring value of constitutional currency.”
HB 1 now advances to the Senate for consideration.
Media Contact: Amanda Bohman, 907-378-6809