The proposed bill aims to regulate the taxation of precious metal bullion, specifically gold and silver, as well as monetized bullion, while establishing that the use of such bullion as legal tender is voluntary. It introduces new definitions for "legal tender," "monetized bullion," and "precious metal bullion," clarifying their roles in transactions. The bill stipulates that Washington courts must enforce specific contract provisions for payments made in precious metal bullion and prohibits any entity from compelling others to accept or tender such bullion unless specified by law or contract. Additionally, it ensures that exchanges of precious metal bullion for legal tender do not incur tax liabilities.

Amendments to existing laws, specifically RCW 82.04.062 and RCW 84.36.070, are included to exempt the sale of precious metal bullion from certain tax computations and to classify precious metal bullion as intangible personal property exempt from ad valorem taxation. The bill also emphasizes that the definitions provided in the new sections will apply to these amendments. The act is designated as the "Washington State Sound Money Act" and is set to take effect on July 1, 2025, due to its urgency in preserving public peace, health, or safety.

Statutes affected:
Original Bill: 82.04.062, 84.36.070