Senate committee hears SB162 to bar municipal taxes on gold and silver; sponsors say it won't create a state currency

Senator Mike Cronk brought Senate Bill 162 before the Senate State Affairs Committee as a measure to align Alaska statute with Article I, Section 10 of the U.S. Constitution by recognizing gold and silver as specie legal tender. Cronk emphasized the bill "does not create a state currency" or mandate private acceptance of specie; instead it would prevent boroughs and cities from imposing sales or use taxes on the intrinsic gold or silver value of coins and bullion.

Staff said the bill would amend multiple Alaska statutes (AS 29.10.200 and AS 29.45 series) to prohibit municipal sales and use taxes on specie transactions while preserving municipal authority to tax dealer premiums, services or collectible value. Section 7 would add a statute designating certain coins or bullion as valid currency and would direct the Legislative Budget and Audit Committee to study potential additional legal tender options.

JP Cortez, executive director of the Sound Money Defense League, testified in support and argued taxing bullion is inefficient because buyers can use out‑of‑state dealers or depositories to avoid local taxes; he said the Alaska Municipal League had moved from opposition to "qualified non‑opposition" after clarifying amendments. Committee members questioned whether any government entity would be required to accept specie for payments or taxes; staff replied that the bill would not compel acceptance by government or private parties.

Senator Wilikowski raised a question about language that recognizes specie "issued by a foreign government," asking whether that could create practical or legal problems; staff answered that no entity would be required to accept foreign‑issued specie and gave examples of foreign coins that meet purity and weight standards.

The committee set SB162 aside for a future hearing; sponsors said they will continue to work on clarifying amendments and collaborate with stakeholders before returning the bill to committee.

What happens next: SB162 was set aside for further drafting and stakeholder consultation; a legislative study was directed to the Legislative Budget and Audit Committee in the bill text.