Kentucky's 2024 HB 8

Source: KITCO //www.kitco.com/charts/gold

In 2024, the Kentucky legislature passed a house bill (HB 8) to exempt currency and bullion from sales and use tax, but Governor Beshear attempted to veto that provision. The legislature ultimately deemed the veto illegal and directed the Secretary of State to enroll the exemption into law, making Kentucky the 45th state to enact such a policy. 

Here's a more detailed breakdown:

• The Bill:

  House Bill 8, a revenue bill, included a provision to exempt currency and bullion (gold, silver, platinum, and palladium coins, bars, and rounds) from Kentucky's sales and use tax. 

  
  

• Governor's Veto:

  Governor Beshear attempted to veto this specific provision, arguing that those who own gold can afford to pay sales tax. 

  
  

• Legislature's Response:

  The Kentucky legislature, however, deemed the veto illegal and did not override it, effectively allowing the exemption to stand. 

  
  

• Legal Opinion:

  The Attorney General, Russell Coleman, issued an opinion supporting the legislature's position, stating the veto was invalid. 

  
  

• Effective Date:

  The sales tax exemption for currency and bullion was set to take effect on August 1, 2024. 

  
  

  The exemption was part of a broader effort by the Sound Money Defense League, Money Metals Exchange, and other in-state activists to end sales taxes on precious metals. Kentucky is now the 45th state to enact a full or partial sales-tax exemption on the sales of coins, paper money, and precious-metal bullion. However, due to the governor's office disputing the legality of the exemption, there could be further legal challenges. Meanwhile, retailers now face a difficult decision on whether to collect sales tax on these items, as the situation remains unclear.