Alabama becomes 13th State to Remove Capital Gains Tax on Gold and Silver

Alabama has enacted a new law, Senate Bill 297, which eliminates state capital gains taxes on the sale of gold and silver, furthering its commitment to sound money principles. Signed by Governor Kay Ivey in May 2024 and effective as of January 1, 2025, this legislation allows individuals to exclude net capital gains from the sale of precious metals from their state income tax calculations. The measure builds on Alabama’s previous efforts, including repealing sales taxes on bullion in 2018 and extending that exemption in 2023. Advocates argue that taxing gold and silver transactions discourages their use as money and unfairly penalizes holders when the dollar depreciates. With bipartisan support, Alabama becomes the 13th state to remove such capital gains taxes, contributing to a broader movement challenging the Federal Reserve’s fiat currency system.