Glen Bradley (NC 49) will be introducing legislation this session allowing North Carolina to use gold and silver as valid tender in our state. The following document is a rough draft but the legislation will be filed after the language is finalized. This is an important piece of legislation for our state and I encourage you to contact your representatives and have them cosponsor this bill.
NORTH CAROLINA DECLARES US CONSTITUTION ARTICLE 10 AUTHORITY RECOGNIZING ELEMENTAL GOLD AND ELEMENTAL SILVER AS VALID TENDER IN THE STATE OF NORTH CAROLINA
North Carolina Constitutional Hard Tender Act
DRAFT RESOLUTION FOR DISCUSSION AND COLLABORATION
§ 1 Authority
§1(A) US Constitution Article 10
§ 2 Definitions
§2(A) Gold Material – All bullion, coin, shot, or bulk material (not to include formed clothing jewelry and artwork) in 22k and 24k gold in exchange by mass of elemental Au
§2(B) Silver Material – All bullion, coin, shot, or bulk material (not to include formed clothing jewelry and artwork) from .90 and .999 purity in exchange by mass of elemental Ag
§2(C) Registered Specie – (see MT/UT listing and process. Allow new specie to register upon certification ie: KITCO bullion)
§2(D) State Money – Any Tender Silver, Tender Gold, or Registered Specie
§2(E) Federal Money – Federal legal tender as defined in Section 31 U.S.C. 5103
§ 3 Use As Tender Authorized
TENDER ALLOWED: State Money shall be legal tender within the State North Carolina. The purchase or exchange of State Money shall not be taxed.
§ 4 Exchange with Federal Money
§4(A) Exchanging State Money for Federal Money
1. State Money may be exchanged to the NC State Treasury for Federal Money at the defined exchange rate
2. State Money may be exchanged for Federal Money to a private enterprise that will provide the service at the exchange rate agreed upon by both parties of the exchange
2a. Assessing of handling fees is allowed for private exchanges.
2b. The State Treasury may assess handling fees at the exchange equal to the operational costs of the exchange.
§4(B) Exchanging Federal Money For State Money
1. The NC State Treasury will to its best ability and supply exchange State Money for Federal Money at the defined exchange rate
2. Federal Money may be exchanged for State Money to a private enterprise that will provide the service at the exchange rate agreed upon by both parties of the exchange
§4(C) Vendor Exchanges
1. Federal Money may be rendered at both parties agreed upon exchange rate in change for purchases made in State Money by sellers if agreed to by both the buyer and the seller.
§4(D) Vendor Acceptance
1. This act shall not compel any seller to accept Registered Specie or State Money, except as agreed to beforehand by contract.
2. Vendors may elect to only accept Registered Specie in lieu of State Money or Federal Money.
3. Retirement Investment plans and 401k etc may only accept registered specie. &c (See “taxation” below) or Federal Money.
§ 4.1 Exchange rate is the Current Median of 168- by 24-hour Moving Average Spot Price.
§ 5 Taxation. (copied from Utah Bill, unadjusted for North Carolina Statute)
59-28-601. Capital Gains TaxInapplicable. In no case shall the acquisition, sale or use of Registered Specie within the course and scope of North Carolina Intrastate Commerce subject any North Carolina Taxpayer to any tax liability whatsoever for any actual or alleged gain realized from fluctuations in the exchange rate between Registered Specie and any other currency, medium of exchange or legal tender.
59-28-602. Sales/Use Tax Exemptions. As provided in U.C.A. § 59-12-104(50)-(51), no sales or use taxes shall apply to the the sale or purchase of Registered Specie within the course and scope of North Carolina Intrastate Commerce. Moreover, no sales tax shall be assessed on transactions between or among North Carolina Intrastate Commerce Cooperatives and North Carolina Intrastate Cooperative Members.
59-28-603. Property Tax Exemption. Pursuant to U.C.A. § 59-2-1114(1), all North Carolina Taxpayer tangible personal property within the ﬁduciary care, custody and control of any North Carolina Intrastate Commerce Cooperative shall be exempt from any and all property taxation.59-28-604. Consolidated Tax Filings by North Carolina Intrastate Commerce Cooperatives. All North Carolina Intrastate Commerce Cooperatives shall be entitled pursuant to U.C.A. §
59-7-401 et seq. to ﬁle a water’s edge combined report as well as a federal consolidated report in lieu of separate tax returns ﬁled by any such cooperative’s North Carolina Intrastate Cooperative Members which shall be exempt from obtaining a tax Identification number separate and apart from the tax identification number of the cooperative under which they operate.
§ 6 Monetary Fraud and Investigations Unit Added
§6(A) Adds an office to the SBI with a single position, to manage the investigations of monetary fraud, plus access to existing investigative resources.
§6(B) Authorizes The Investigative Office
§6(C) Funds The Investigative Office (Receipt Supported?)
§ 7 Funding The Service and Exchange
§7(A) Receipt Supported?