(Money Metals News Service) The Kentucky legislature has overwhelmingly passed a new sound money bill, sending the measure to Gov. Andy Beshear for his signature.
House Bill 2 aims to prevent the collection of sales taxes on gold and silver, and would enable taxpayers to sue the state for recovery of improper tax collections since a similar bill became law last summer.
Last year, Gov. Beshear purported to have exercised a line-item veto deleting a gold and silver sales tax exemption that had been included in a 2024 revenue bill. At the time, he sneered at Kentucky savers, saying, “If you own gold, you can afford to pay sales tax.”
In response, the legislature deemed Beshear’s line veto invalid and directed the provision to be formally codified by the Revisor of Statutes (which it was). The state attorney general also declared the governor’s veto invalid because the line-item veto power only exists in the state constitution with respect to appropriations bills, which this was not.
Ignoring state law, the governor directed the Kentucky Department of Revenue to continue collecting the tax, threatening businesses and investors with legal action.
Introduced by freshman legislator Rep. T.J. Roberts in January, House Bill 2 passed the state House, 76-17 and subsequently cleared the state Senate by another overwhelming vote of 30-6.
The bill reads: “Any aggrieved taxpayer who has had taxes collected from them in any purchase that are exempt under KRS 139.480(37), may maintain an action for a refund on behalf of themselves and others similarly situated, without need to resort to any administrative process, against any person collecting or holding such tax funds, including the Secretary of the Finance and Administration Cabinet and the Commissioner of the Department of Revenue.”
This bill is supported and sponsored by leaders of the Republican majority and was assigned a single-digit House Bill number, a designation usually assigned to priority bills with strong support.
In an interview with the Sound Money Defense League today, Rep. Roberts said, “The Kentucky state legislature has again affirmed that purchases of gold and silver should not be taxed. Gov. Beshear’s blatant abuse of power ends with the passage of House Bill 2.”
“Citizens of Kentucky, or of any state in the United States, for that matter, shouldn’t be taxed for trying to use, buy, or transact in honest, sound money,” said the freshman legislator from District 66 who has already become known for his pro-liberty views.
If HB 2 becomes law – whether signed by the governor or by veto override, aggrieved taxpayers will be entitled to reimbursement of their attorney’s fees and legal costs.
Rep. Roberts says he expects a veto from the governor, but that he’s committed to rallying the votes required to override it.
The Sound Money Defense League and Money Metals Exchange have worked for years in Kentucky to pass sound money legislation. Kentucky aims to become the 46th state to end this tax on purchases of gold and silver.
img credit: Gage Skidmore/Flickr
