INVESTMENT OF PUBLIC FUNDS IN GOLD AND SILVER

(Section 30.266)

The act requires the State Treasurer to invest not less than 1% of the funds held in the Budget Reserve Fund in gold and silver.

INCOME TAXATION ON GOLD AND SILVER

(Section 143.121)

Current law exempts all purchases of bullion and investment coins from all state and local sales taxes. This act additionally exempts from state income tax the portion of capital gain on the sale or exchange of gold and silver that are otherwise included in the taxpayer's federal adjusted gross income.

GOLD AND SILVER AS LEGAL TENDER

(Section 408.010)

The act declares that gold and silver shall be accepted as legal tender, at their par value, and shall be receivable in payment of all debts, public and private, contracted for in the state of Missouri. Costs incurred in the course of verification of the weight and purity of any gold or silver during any such transaction shall be borne by the receiving entity. No person or entity shall be required to use gold or silver issued by the federal government in the payment of any debt. Nothing in this act shall prohibit the use of federal reserve notes in the payment of any debt. Except as otherwise provided in certain criminal cases, under no circumstance shall the state of Missouri or any department, agency, court, political subdivision, or instrumentality thereof seize from any person any bullion that is owned by such person.

PRODUCTION AND SALE OF GOLD AND SILVER COINS

(Section 408.012)

The act permits any person or entity to produce and sell gold or silver coins in this state, provided the coins are labeled in a clear and intelligible manner noting the weight and purity of the coin and provided further that the person or entity has complied with current provisions of law governing the sale of precious metals.

MISSOURI BULLION DEPOSITORY

(Section 408.014)

The act creates the Missouri Bullion Depository. The Depository is established as an agency within the office of the State Treasurer for the purpose of serving as the custodian, guardian, and administrator of certain bullion and specie that may be transferred to or otherwise acquired by this state or any department, agency, or political subdivision thereof.

The Depository is permitted to receive a deposit of bullion or specie, as such terms are defined in the act, from or on behalf of a person acting in the person's own right, as trustee, or in another fiduciary capacity, in accordance with rules adopted by the Treasurer, as outlined in the act. The Depository shall keep and maintain records of the bullion and specie that each person deposits. The Treasurer shall adopt standards by which the quantities of bullion and specie deposited are credited to a depositor's depository account by reference to the particular form in which the metals were deposited. The standards must conform to applicable national and international standards of weights and measures. The Treasurer may, if it is in the public interest, restrict the forms in which deposits may be made.

The Treasurer shall submit to the Governor and the General Assembly a report on the status, condition, operations, and prospects for the Depository and depository participation each year not later than September 30.

SCOTT SVAGERA