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 meanings within the context of Washington state law. The bill stipulates that Washington courts must enforce specific contract provisions requiring payment in precious metal bullion or monetized bullion, and it prohibits any person or entity from being compelled to accept or tender these forms of payment unless specified by law or contract. Additionally, the bill 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 in the bill. Notably, it specifies that the sale of precious metal bullion or monetized bullion is exempt from certain tax computations and clarifies that these forms of bullion are considered intangible personal property, thus exempt from ad valorem taxation. The bill is titled the "Washington State Sound Money Act" and is set to take effect on July 1, 2025, as it is deemed necessary for the immediate preservation of public peace, health, or safety.

Statutes affected:
Original Bill: 82.04.062, 84.36.070