An Arizona lawmaker has won a fight for a tax break for gold investors.
Rep. Mark Finchem (R-Oro Valley) has said that gold buyers should not have to pay state taxes on any money made when the gold is sold, according to a press release.
“If you were to exchange four quarters for a dollar bill, that’s not a taxable event,’’ Finchem was quoted as having said during a recent House debate on HB 2014.
His position has been that gold is simply another form of currency. He also stated that the dollar has actually become more useless.
“I would hope one day the U.S. Mint would wake up and see that they have essentially turned our paper money into something that’s virtually worthless,’’ he said. “In fact, since 1910 up to today, a dollar bill went from a dollar in value to less than three cents.’’
A similar bill was rejected in 2013 as a concern was raised that the bill may prevent the state from collecting income taxes on the revenue. The bill was vetoed by then-Gov. Jan Brewer.
“This would result in lost revenue to the state, while giving businesses that buy and sell collectible coins or current originally authorized by Congress an unfair advantage," Brewer said according to The Daily Courier.
The bill passed the Senate on May 10 and was signed into law by Gov. Doug Ducey on May 22.