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 aims to provide tax neutrality for individuals engaging in transactions involving precious metals, thereby encouraging investment in these assets.

Additionally, the bill includes various provisions regarding gross income, specifying what is included and excluded from taxable income. Notably, it retains existing exemptions while adding the new exclusion for precious metal bullion. The act is set to take effect on January 1, 2025, allowing time for implementation and compliance by taxpayers and the Department of Revenue.

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