As inflation cuts into Alaskans’ savings, individuals and businesses are actively seeking ways to protect their hard-earned money. Lawmakers in Alaska have reintroduced a popular bill seeking to further align Alaska with the U.S. Constitution as it pertains to gold and silver.

Alaska House Bill 1 and Senate Bill 162, reintroduced by Representative Kevin McCabe (R – Big Lake) and Senator Mike Cronk (R – Tok/Northway) and supported by the Sound Money Defense League and Money Metals Exchange, would end sales tax on purchases of gold and silver in municipalities and localities around the state.

Forty-six states have already fully or partially eliminated the state sales tax on the purchase of precious metals, including Alaska. Alaska is one of the five states in the country that does not have a state sales tax, though local governments can impose sales tax if they choose. This bill would prohibit local tax on the metals.

This measure also reaffirms gold and silver as legal tender as outlined in Article I, Section 10 of the U.S. Constitution, which says “No state shall… make any Thing but gold and silver Coin a Tender in Payment of Debts.”

HB 1 and SB 162 also call for a House Finance Committee study on the possibility of establishing additional forms of legal tender for the payment of debts, including public charges, taxes, and other money owed to the state.

Last year, House Bill 3 (a bill identical to House Bill 1), enjoyed strong support through the Legislature, with 20 co-sponsors signed onto the bill ranging from Republicans to Democrats to independents. House Bill 3 passed out of the House State Affairs and Finance committees and advanced out of the full House by a 25-15 vote, before stalling in a Senate committee.

Jp Cortez, executive director of the Sound Money Defense League, traveled to Juneau multiple times to support the effort, explaining to Alaskan lawmakers the historic role that gold and silver have played in the U.S.

The problem of the steady erosion in the value of the Federal Reserve note, i.e. the dollar, is rooted in irresponsible federal monetary and fiscal policies. Alaska doesn’t have to stand by as the effects of federal policies harm Alaskans statewide. Here’s why Alaska should be the next state to enact sound money legislation:

Gold and silver are primarily held for resale, similar to stocks, bonds, or ETFs. Alaska doesn’t tax the purchase of other assets held for resale, but its citizens may still have to pay a tax on gold and silver, creating an undue burden on those investing in precious metals. 

Wealthy Alaskans have plenty of tax-advantaged options to invest. Those investing in physical precious metals tend to be citizens of more humble means.                            

The exchange of one dollar for four quarters is a nontaxable event. Exchanging dollars for the only form of money mentioned in The Constitution should not be taxed.

A sales tax on gold, whose price continues to hit all-time highs seemingly daily, can represent a significant additional cost, making it less accessible for those who are economically vulnerable. 

Taxing purchases of gold and silver is also an inefficient form of revenue collection; a Michigan study suggests that any sales tax proceeds collected by the state may be outweighed by the revenue lost from the businesses, conventions, or economic activity being driven out to the other 46 states.

Since 2024, New Jersey, Wisconsin, and Kentucky have ended their state sales tax on purchases of precious metals.

Other states are going beyond taxes. In 2025 alone, Wyoming has established a $10 million physical gold reserve, Idaho passed bills eliminating capital gains taxes on gold and silver and reaffirming the two precious metals as legal tender, and Kentucky became one of the dozens of states to end sales taxes on purchases of precious metals.

Alaska should join the national movement by picking up where House Bill 3 left off, and enacting House Bill 1 and Senate Bill 162 into law.

Matthew Cortez is a policy assistant for the Sound Money Defense League, a non-partisan public policy group working to restore sound money at the state and federal level since 2014.