The Sound Money Tax Neutrality Act amends Section 40-18-14 of the Code of Alabama 1975 to exclude net capital gains derived from the exchange of precious metal bullion from state income taxes. The bill defines "precious metal bullion" as coins, bars, or rounds primarily made of refined gold, silver, platinum, or palladium, valued mainly by their weight, purity, and content. This new provision is inserted into the existing legal framework, providing clarity on what constitutes exempt income under state tax law.

Additionally, the act includes various provisions regarding gross income, such as exemptions for life insurance proceeds, certain employee compensation, and other specific income types. The bill also outlines the responsibilities of employers in reporting compensation for overtime work and mandates the Department of Revenue to adopt rules for administering these changes. The act is set to take effect on January 1, 2025.

Statutes affected:
Introduced: 40-18-14, 40-18-15
Engrossed: 40-18-14
Enrolled: 40-18-14