"Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money."
Senator Daniel Webster
(Tenth Amendment Center) - Yesterday, the Texas House passed two pieces of legislation that would facilitate the use of gold and silver as money in the state.
Final passage of the bill and amendment would open the door to currency competition in Texas, and serve to undermine the Federal Reserve’s unconstitutional monopoly on money.
A coalition of three representatives introduced House Joint Resolution 38 (HJR38) and House Bill 239 (HB239) for the special session of the Texas legislature on July 19.
If both houses pass HJR38, a state constitutional amendment authorizing the legislature to “exempt from ad valorem taxation precious metal held in the Texas Bullion Depository,” would be placed on the November ballot. Yesterday, the House approved the measure 125 to 14.
Passage of HB239 would put the constitutional amendment into effect, prohibiting ad valorem taxation on precious metals held in the depository.
Sec. 11.141. PRECIOUS METAL HELD IN TEXAS BULLION DEPOSITORY. Sec. 11.141. PRECIOUS METAL HELD IN TEXAS BULLION DEPOSITORY.
(a) For purposes of this section, “precious metal” has the meaning assigned by Section 2116.001, Government Code.(b) A person is entitled to an exemption from taxation of the precious metal that the person owns and that is held in the Texas Bullion Depository established under Chapter 2116, Government Code, regardless of whether the precious metal is held or used by the person for the production of income.(c) Notwithstanding Section 11.14(c), the governing body of a taxing unit may not provide for the taxation of precious metal exempted from taxation under Subsection (b).
Under Texas law, precious metal is defined as “metal, including gold, silver, platinum, palladium, and rhodium, that bears a high value-to-weight ratio relative to common industrial metals; and customarily is formed into bullion or specie.”
HB239 passed today by a 133-10 vote.
Final passage of HB239, along with approval of the amendment by Texas voters, would exempt precious metals in the Texas Bullion Depository from ad valorem taxes and would represent another step forward forward in facilitating sound money in the Lone Star State.
Gov. Greg Abbot signed a law creating a state gold bullion and precious metal depository in the summer of 2015. Since then, the state has moved forward in establishing the depository. In June, officials formally announced the private vendor that will run the facility.
Once operational, private individuals and entities will be able to purchase goods and services, using assets in the vault the same way they use cash today.
Read More . . . .