Senate Bill 297 allows Alabama to exempt capital gains taxes on the sale of gold and silver in a bid to prioritize the earnings of citizens and to protect them from the harmful effects of inflation, currency debasement and increasing federal debt.
Under the new law, any profits or losses from the sale of precious metals, as reported on federal tax returns, will be excluded from the calculation of an Alabama taxpayer's adjusted gross income. This provision effectively shields individuals from punitive taxation on transactions involving constitutionally recognized forms of currency.
The bill, championed by Sen. Tim Melson (R-Florence) and Rep. Jamie Kiel (R-Russellville) and supported by pro-precious metals organizations like the Sound Money Defense League and Money Metals Exchange, was passed by the Alabama Legislature with bipartisan support. This reflects a broad recognition of the importance of sound money principles, particularly in an era of high inflation.
