Bill Text: PA HB1690 | 2011-2012 | Regular Session | Introduced

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Bill Title: Relating to legal tender.

Spectrum: Strong Partisan Bill (Republican 11-1)

Status: (Introduced - Dead) 2011-06-17 - Referred to FINANCE [HB1690 Detail]

Download: Pennsylvania-2011-HB1690-Introduced.html

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PRINTER'S NO. 2135
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1690 Session of2011
INTRODUCED BY CREIGHTON, BARBIN, DENLINGER, GEIST, GINGRICH, LAWRENCE, MURT, RAPP, SWANGER AND TALLMAN, JUNE 17, 2011
REFERRED TO COMMITTEE ON FINANCE, JUNE 17, 2011
AN ACT
Relating to legal tender.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Legal Tender
Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Capital gain transaction." A transaction that results in a
short-term capital gain or long-term capital gain as defined in
Section 1222 of the Internal Revenue Code of 1986 (Public Law
99-514, 26 U.S.C. § 1222).
"Gold and silver coin." A gold and silver coin issued and
deemed legal tender by the Federal Government.
Section 3. Legal tender.
(a) General rule.--Gold and silver coins shall be considered
legal tender in this Commonwealth.
(b) Prohibited activity.--A person shall not compel any
other person to tender or accept gold and silver coin that is
issued and deemed legal tender by the Federal Government.
Section 4. Sales tax exemption.
The exchange of gold and silver coins issued and deemed legal
tender by the Federal Government for another form of legal
tender shall be exempt from taxation under Article II of the act
of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
1971.
Section 5. Tax credit.
(a) General rule.--A nonrefundable credit is established for
capital gains incurred from the exchange of gold and silver
coins issued and deemed legal tender by the Federal Government
for other forms of legal tender. For taxable years beginning on
or after December 31, 2011, a claimant, estate or trust may
claim the credit, which shall be equal to 5% of the total amount
of the short-term capital gains and long-term capital gains of
exchanges for the applicable time period.
(b) No carryforward or carryback.--Neither carryforward nor
carryback of tax credits under this section shall be permitted.
Section 6. Study.
The Legislative Budget and Finance Committee shall conduct a
study concerning the feasibility of establishing an alternative
form of legal tender for payment of debts, public charges, taxes
and dues within this Commonwealth which, at a minimum, shall
recommend whether legislation should be drafted to establish an
alternative form of legal tender.
Section 7. Severability clause.
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The provisions of this act are severable. If a section of
this act or application thereof to any person or circumstance is
declared invalid by final decision of a court of competent
jurisdiction, the remainder of this act shall be given effect
without reference to the invalid section or application.
Section 8. Effective date.
This act shall take in 60 days.
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