Introduced as House Bill 3081 in the 2023–2024 legislative session, this measure proposes a 100% deduction from South Carolina taxable income for any capital gains realized from the sale of gold, silver, or platinum bullion. This would effectively eliminate state capital gains tax on precious metal transactions, making them far more feasible as mediums of exchange.
What it aims to do: Enable taxpayers—individuals, estates, and trusts—to fully deduct any profit made from selling qualifying precious metals.
Rationale: Many long-term holders of metals experience only nominal gains due to inflationary effects on currency, yet current law still treats those as taxable income. This bill seeks to remove that financial disincentive, aligning with financial self-protection strategies.
Filed: Prefiled in December 2022 and formally introduced in January 2023.
Referral: Sent to the House Ways and Means Committee for review and consideration.
Status: As of mid‑2024, the bill remains under committee consideration with no advancement to a final vote or enactment.
South Carolina already boasts a sales tax exemption for most bullion and collectible coins. However, without similar relief on income taxes, bullion is still treated as a taxable investment rather than potential legal tender. By fully exempting capital gains, HB 3081 would remove a significant barrier to using precious metals in everyday commerce—paving the way for broader monetary choice and sound-money practices.