Kentucky Considers Bill to Entice Gold and Silver Investors to Sue the State for Wrongful Taxation

After a multi-year effort backed by Money Metals, the Sound Money Defense League, and other in-state allies, the Kentucky legislature approved a bill that included ending the sales tax on purchases of precious metals in 2024. 

However, Gov. Beshear used an unconstitutional line-item veto on the gold and silver sales tax exemption when he did not have the power to do so, sneering, “If you own gold, you can afford to pay sales tax.”

Despite the sales tax exemption on the metals being codified in state statutes and an opinion from the state Attorney General declaring the veto invalid, the governor directed his department of revenue to continue collecting the tax, threatening businesses and investors who did not comply with legal action.

In response, freshman legislator Rep. T.J. Roberts has introduced House Bill 2, a measure that would give aggrieved taxpayers a legal remedy to sue state officials for improper taxation on the purchase of gold and silver in the Bluegrass State. 

The bill says, “any aggrieved taxpayer who has had taxes collected from them in any purchase that are exempt under KRS 139.480(37), may maintain an action for a refund on behalf of themselves and others similarly situated, without need to resort to any administrative process, against any person collecting or holding such tax funds, including the Secretary of the Finance and Administration Cabinet and the Commissioner of the Department of Revenue.”

 This bill is supported and sponsored by the majority of GOP-leadership and was even assigned a single-digit House Bill number, a designation usually assigned to priority bills with strong support.

 Rep. Roberts told the Sound Money Defense League, “Gov. Beshear has engaged in illegal action in order to block legislation he does not like. This is a blatant abuse of separation of powers.”

 “Citizens of Kentucky, or of any state in the United States, for that matter, shouldn’t be taxed for trying to use, buy, or transact in honest, sound money,” the liberty firebrand from District 66 continued.

Aggrieved taxpayers who prevail will be entitled to reimbursement of their attorney’s fees and legal costs.

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