The bill, known as the Sound Money Tax Neutrality Act, seeks to amend Section 40-18-14 of the Code of Alabama 1975, which pertains to state income tax for individuals. The amendment specifically aims to exclude net capital gains derived from the exchange of precious metal bullion from state income taxes. Precious metal bullion is defined in the bill as coins, bars, or rounds primarily made of refined gold, silver, platinum, or palladium, which are marked and valued mainly by their weight, purity, and content.

The bill includes an insertion that adds a new exemption to the list of items that are not considered gross income for the purposes of state income tax. This new exemption (paragraph n) is for any net capital gain from the exchange of precious metal bullion. The bill does not mention any deletions from the current law. The act is set to become effective on January 1, 2025, and has been enrolled and passed by both the Senate and the House of Representatives of Alabama, with Senator Melson as the originating sponsor.

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