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 law, providing a tax exemption for individuals who realize gains from such exchanges.

Additionally, the bill includes various provisions regarding gross income, detailing what is included and excluded from taxable income. Notably, it maintains existing exemptions while adding the new exemption for precious metal bullion. The act is set to take effect on January 1, 2025, allowing individuals to benefit from this tax neutrality regarding precious metals in the upcoming tax year.

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