TALLAHASSEE, Fla. — Gold and silver bullion could soon be used as a legal way for Floridians to buy goods and services, the state's Chief Financial Officer Jimmy Patronis said Wednesday.
Patronis announced his office is launching a study on how gold and silver can be used as legal tender in the state. Gold and silver can be bought as investments but can't be used to purchase goods and services.
11 states around the country currently allow gold and silver as legal tender, including Louisiana, Texas, South Carolina and West Virginia. Patronis said he wants to add Florida to that list.
In a statement, Patronis's office said the study would be a "major first step" toward the use of gold and silver as money, which, depending on the outcome of the study, could be used as an alternative to U.S. dollars, which they said would combat the "devastating" effects of inflation.
“This is an exciting initiative that has the potential for enormous growth in our state," Patronis said. "Gold and silver have been trusted assets for thousands of years, and it makes perfect sense to use them as legal tender. I’m launching this study to determine the best way to get it done."
Patronis said in addition to inflationary effects, gold and silver would also have the following tax-exempt parameters:
- Gold and silver bullion would not be taxed as personal property.
- The purchase or sale of gold and silver would not give rise to state tax liability.
- Exchanging one type of legal tender (dollars) for another would not give rise to state tax liability.
The U.S. dollar was originally backed by gold, known as the "gold standard." This practice ended in 1933 nationwide, and the U.S. stopped the practice of exchanging gold for dollars in 1971.
Utah was the first state to re-introduce gold and silver coins as alternative legal tender, passing a bill in 2011. Since then, 10 other states have passed legislation recognizing gold and silver as legal tender.