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SALT LAKE CITY — The House passed a bill Friday that would recognize gold and silver coins issued by the federal government as legal tender in Utah.
Rep. Brad Galvez, R-West Haven, called HB317 a "baby step" toward making the use of gold and silver coins more widespread.
Under the measure, which passed 47-26, the Revenue and Taxation Interim Committee would study the ways gold and silver tender could be used.
Some legislators expressed concerns over how the bill would exempt gold and silver coins from capital gains tax, possibly causing a tax loophole. Rep. Steve Eliason, R-Sandy, called the bill a "crafty tax policy" and a waste of the interim committee's time.
But Rep. Doug Sagers, R-Tooele, stood by the bill, which now moves to the Senate, saying that taxing the currency would devalue it.
Legislative fiscal analysts have estimated the bill would reduce the state's income tax revenue, which funds public education, by $250,000 in 2012 and $550,000 per year beginning in 2013.
Galvez said the state would see an increase in sales tax revenue as the value of gold rises.
E-mail:averzello@desnews.com
