The bill amends existing laws in Alaska to clarify the status of specie, specifically gold and silver, as legal tender and to establish regulations regarding sales and use taxes on such currency. It introduces new provisions that prohibit boroughs and cities from levying or collecting sales or use taxes on the sale or exchange of specie. This is reflected in the amendments to AS 29.45.650 and AS 29.45.700, where the new subsections (m) and (i) explicitly state that no sales or use tax can be applied to transactions involving specie. Additionally, the bill updates the definitions of legal tender in AS 44.12.400 to include specie issued by the federal government, recognized foreign governments, and the state government under certain conditions.

Furthermore, the bill mandates that the Legislative Budget and Audit Committee study the feasibility of establishing additional forms of legal tender for debts owed to the state. It clarifies that while specie can be considered legal tender, individuals are not obligated to accept it as payment. The bill aims to enhance the legal framework surrounding specie in Alaska, ensuring its recognition and protection from taxation at the local level while also exploring broader implications for legal tender in the state.

Statutes affected:
SB0162A, AM SB 162, introduced 04/09/2025: 29.10.200, 29.45.650, 29.45.700, 04.21.010, 29.45.750, 44.12.400