House Bill 1440

AN ACT TO CREATE THE MISSISSIPPI TRANSACTIONAL GOLD AND SILVER ACT; TO DEFINE CERTAIN TERMS RELATING TO THIS ACT; TO RECOGNIZE GOLD AND SILVER AS LEGAL TENDER FOR PRIVATE TRANSACTIONS AND, WHEN ACCEPTED, FOR PAYING STATE AND LOCAL TAXES OR FEES; TO AUTHORIZE THE CREATION OF A SECURE BULLION DEPOSITORY AND A SPECIE-BACKED ELECTRONIC PAYMENT SYSTEM; TO EXEMPT GOLD AND SILVER TRANSACTIONS FROM STATE SALES, USE, AND INCOME TAXES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. This act shall be known and may be cited as the "Mississippi Transactional Gold and Silver Act."

SECTION 2. The Legislature finds that:

(a) The use of gold and silver as a medium of exchange has a historical basis in fostering economic stability and individual liberty;

(b) Recognizing gold and silver as legal tender promotes competition in the monetary system and protects against reliance on fiat currency; and

SECTION 3. (1) The following words and phrases have the meanings as provided in this section unless the context clearly indicates otherwise:

(a) "Bullion depository" means an entity providing vault facilities within the United States for the storage of bullion that:

(i) Complies with the prescribed London Bullion Market best practice guidelines for the storage of bullion;

(ii) Has a contractual relationship to provide value services to hold and receive deposits of specie or legal tender for an authorized precious metals-backed electronic payment system vendor;

(b) "Depository agent" means a private entity authorized by the [State Chief Fiscal Officer or Equivalent Office] to operate a bullion depository or perform related services under this section.

(c) "Legal tender" means a medium of exchange, including specie, recognized by the State of Mississippi for the payment of debts, taxes, fees, and other obligations.

(d) "Specie" means gold or silver coin issued by the United States or a foreign government, or gold or silver in the form of bars or other physical forms certified as at least ninety-nine percent (99%) pure.

(e) "Specie-backed electronic payment system" means a digital platform or payment system that uses gold or silver specie as the basis for transactions.

(f) "Transactional gold and silver" means a representation of physical gold, silver, specie, or bullion that:

(i) May be transferred through electronic or written instruction through a transaction by the owner of the specie; and

(ii) Is fully redeemable as physical gold, silver, specie, or bullion.

(2) Gold and silver specie are recognized as legal tender in the State of Mississippi. Gold and silver specie may be used for the payment of:

(a) Debts between private parties, if the parties mutually agree to the use of specie; and

(b) Taxes, fees, or other obligations owed to the State of Mississippi or a political subdivision, if the State of Mississippi or political subdivision agrees to accept specie as payment.

No person or entity shall be required to accept gold or silver specie as payment, except as provided in this section or by mutual agreement.

(3) The executive director of the Department of Finance and Administration shall promulgate rules and regulations to:

(a) Designate or establish a bullion depository for the secure storage of gold and silver specie to facilitate transactions under this section; and

(b) Authorize a specie-backed electronic payment system to enable vendors to receive payments from the State of Mississippi or political subdivisions using gold or silver specie.

(4) The executive director of the Department of Finance and Administration may:

(a) Operate the bullion depository directly or contract with a depository agent to perform depository services; and

  (b) Contract with a private entity to develop or operate the specie-backed electronic payment system.

(5) Rules promulgated under this subsection shall ensure:

(a) The bullion depository is secure, transparent, and accessible to residents of the State of Mississippi;

 (b) The specie-backed electronic payment system is reliable and complies with applicable state and federal laws; and

(6) The sale, purchase, or exchange of gold or silver specie recognized as legal tender under this section is exempt from state sales and use taxes. Any capital gains or losses resulting from the sale or exchange of gold or silver specie are exempt from state income tax.

(7) The executive director of the Department of Finance and Administration shall implement the provisions of this section within one (1) year of the effective date of this act. Such executive director shall submit an annual report to the Legislature detailing:

(a) The status and operations of the bullion depository;

(b) The implementation and usage of the specie-backed electronic payment system; and

SECTION 4. This act shall take effect and be in force from and after July 1, 2026.