SB56 Alabama 2012 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Session

Regular Session 2012

Title

Gold and silver coins issued by federal government, legal tender in Alabama, sales and use tax liability for exchange of coins exempted from state tax, Legal Tender Act

Summary

SB56 would make federal gold and silver coins legal tender in Alabama, exempt their exchanges from state taxes, and establish a 5% nonrefundable capital gains credit for such exchanges starting in 2012.

What This Bill Does

If passed, federal gold and silver coins would be treated as legal tender in Alabama. Exchanges of these coins for other forms of legal tender would be exempt from Alabama sales and use taxes. The bill also creates a 5% nonrefundable tax credit for capital gains from these exchanges for individuals, estates, or trusts, beginning with tax years on or after January 1, 2012, and the credit may not be carried forward or backward. The act would take effect on January 1, 2012.

Who It Affects

• Individuals who hold and exchange federal gold or silver coins and realize capital gains from those exchanges.
• Estates and trusts that realize capital gains from exchanging these coins may claim the 5% credit.

Key Provisions

• Legal tender status: gold and silver coins issued by the federal government are recognized as legal tender in Alabama.
• Acceptance: no one can be forced to tender or accept these federal coins.
• Tax exemption: exchange of these coins as legal tender is exempt from state sales and use taxes.
• Capital gains credit: for tax years beginning January 1, 2012 and thereafter, claimants, estates, or trusts may claim a nonrefundable 5% tax credit on gains from such exchanges; credit applies to short-term or long-term capital gains and cannot be carried forward or backward.
• Effective date: the act becomes effective January 1, 2012.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation