Gold, Silver Coins Now Officially Legal Tender In Utah

Utah's tax code says U.S. Mint issued gold and silver coins are currency, rather than assets taxable by the state. Author: Dorothy Kosich RENO, NV -  Utah Gov. Gary Herbert last week quietly signed a law which has made Utah  the first U.S. state to recognize federally issued gold and silver coins as legal  tender. However, the governor chose not to make any public statement about the Utah Legal Tender Act. Utah's state tax code now considers U.S. Mint gold and silver coins as currency,  which means no capital gains or other state taxes will be levied when the coins  are exchanged. However, the gold and silver coins are still only worth their face  value despite record gold and silver prices. A person only identified as close to Herbert told CNN, "If somebody is stupid  enough that they want to buy a Snickers bar at 7-Eleven with a gold coin worth  thousands of dollars, they will be able to do that." Larry Hilton, an attorney and insurance salesman who authored the Utah Sound  Money Act, said eliminating taxes on the exchange of the gold and silver coins  places them in the same playing field as paper currency. However, federal taxes  still apply. The law also does not apply to foreign minted gold coins. He told the Salt Lake Tribune last December that the Utah Sound Money Act is  "not intended to be compulsory in any way. The state is offering to taxpayers,  "If you want to pay your taxes in gold and silver, we'll accept them." James West, publisher of the Midas Lettter, Wednesday called Utah Sound  Money Act "a shot at the Federal Reserve. And Utah isn't alone. A few other  states are considering similar bills." "Conservatives fret that the central bank has permanently damaged the value  of the dollar by pumping trillions into the economy, drawing down the greenback's  buying power," he observed. "And Utah - where the Tea Party has a powerful  presence - is leading the charge against Fed Chairman Ben Bernanke." The Utah Sound Money Act was also promoted by Washington-based American  Principles in Action, which is backing the Gold Standard 2012 program. Source: http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid= 124156&sn=Detail&pid=102055