Utah Senate passes bill recognizing federal gold and silver coins as legal tender, directs study on tax treatment

The Utah Senate on March 9, 2011 passed First Substitute House Bill 317, a measure to recognize federal gold and silver coins as legal tender in the state and to address related tax and handling questions. Senator Jenkins, the sponsor, described the bill as limited: it "recognizes gold and silver coins issued by the federal government to be legal tender in the state of Utah" and "does not compel a person to use gold or silver," while directing the Revenue and Taxation Interim Committee to study capital-gains tax treatment for the 2012 session.

During brief floor questioning, Senator Robles asked whether the Senate could trust federal coins "as long as the weight that they say of gold, silver is correct." The sponsor responded that the bill presumes standard federal mint specifications and emphasized that the measure primarily establishes legal recognition and requires additional study.

On final roll call, First Substitute House Bill 317 received 21 yea votes, 4 nays and 4 absent. The Senate recorded the passage in open session; the bill will be returned to the House for the speaker’s signature and the committee study is scheduled as a follow-up for the interim Revenue and Taxation committee.

Implementation notes: the sponsor said the bill "does not compel a person to use gold or silver" and that the Revenue and Taxation Interim Committee will study handling of capital gains and provide recommendations for the 2012 session. No specific effective date was recorded in the floor statements.