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SB162 • 2026

SPECIE AS LEGAL TENDER

An Act relating to specie as legal tender in the state; and relating to borough and city sales and use taxes on specie.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
SENATORS CRONK, Rauscher
Last action
2026-05-11
Official status
(S) RLS
Effective date
Not listed

Plain English Breakdown

The bill does not specify the exact conditions under which a court can designate specie as legal tender, nor does it mandate a specific timeline or criteria for studying additional forms of legal tender.

Specie as Legal Tender Act

This act makes gold and silver coins, known as specie, legal tender in the state of Alaska and exempts them from borough and city sales and use taxes.

What This Bill Does

  • Makes specie issued by the federal government or recognized foreign governments legal tender in the state if they are considered legal tender by those entities.
  • Exempts specie from borough and city sales and use taxes during sale or exchange.

Who It Names or Affects

  • People who use or trade in gold and silver coins (specie).
  • Boroughs and cities that collect sales and use taxes.

Terms To Know

Legal Tender
A recognized medium of exchange for the payment of debts.
Specie
Gold or silver valued primarily based on its metal content and in the form of coin or bullion stamped with weight and purity.

Limits and Unknowns

  • The bill does not require individuals or entities to accept specie as tender.
  • It is unclear how the exemption from sales taxes will affect local government revenues.

Bill History

  1. 2026-05-11 2579

    (S) COSPONSOR(S): RAUSCHER

  2. 2026-05-08 Min

    (S) Minutes (SFIN)

  3. 2026-05-08 Text

    (S) Moved CSSB 162(STA) Out of Committee

  4. 2026-05-08 Text

    (S) FINANCE at 09:00 AM SENATE FINANCE 532

  5. 2026-05-08 2537

    (S) REFERRED TO RULES

  6. 2026-05-08 2537

    (S) FN2: ZERO(ADM)

  7. 2026-05-08 2537

    (S) FN1: ZERO(CED)

  8. 2026-05-08 2536

    (S) NR: STEDMAN, MERRICK, KIEHL

  9. 2026-05-08 2536

    (S) DP: HOFFMAN, KAUFMAN, CRONK

  10. 2026-05-08 2536

    (S) FIN RPT CS(STA) 3DP 3NR

  11. 2026-05-04 Text

    (S) Heard & Held

  12. 2026-05-04 Text

    (S) FINANCE at 09:00 AM SENATE FINANCE 532

  13. 2026-03-20 1993

    (S) FN2: ZERO(ADM)

  14. 2026-03-20 1993

    (S) FN1: ZERO(CED)

  15. 2026-03-20 1993

    (S) DP: GRAY-JACKSON, BJORKMAN, TILTON

  16. 2026-03-20 1993

    (S) NR: KAWASAKI, WIELECHOWSKI

  17. 2026-03-20 1993

    (S) STA RPT CS 2NR 3DP SAME TITLE

  18. 2026-03-19 Text

    (S) Moved CSSB 162(STA) Out of Committee

  19. 2026-03-19 Text

    (S) STATE AFFAIRS at 03:30 PM BELTZ 105 (TSBldg)

  20. 2026-03-12 Text

    (S) Heard & Held

  21. 2026-03-12 Text

    (S) STATE AFFAIRS at 03:30 PM BELTZ 105 (TSBldg)

  22. 2026-02-26 Text

    (S) Heard & Held

  23. 2026-02-26 Text

    (S) STATE AFFAIRS at 03:30 PM BELTZ 105 (TSBldg)

  24. 2025-04-09 745

    (S) STA, FIN

  25. 2025-04-09 745

    (S) READ THE FIRST TIME - REFERRALS

Official Summary Text

SPECIE AS LEGAL TENDER
An Act relating to specie as legal tender in the state; and relating to borough and city sales and use taxes on specie.

Current Bill Text

Read the full stored bill text
SB0162B -1- CSSB 162(STA)
New Text Underlined [DELETED TEXT BRACKETED]

34-LS0873\N

CS FOR SENATE BILL NO. 162(STA)

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY THE SENATE STATE AFFAIRS COMMITTEE

Offered: 3/20/26
Referred: Finance

Sponsor(s): SENATOR CRONK
A BILL

FOR AN ACT ENTITLED

"An Act relating to specie as legal tender in the state; and relating to borough and city 1
sales and use taxes on specie." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 29.10.200(56) is amended to read: 4
(56) AS 29.45.650(c), (d), (e), (f), (i), (j), (k), [AND] (l), and (m) 5
(sales and use tax); 6
* Sec. 2. AS 29.10.200(57) is amended to read: 7
(57) AS 29.45.700(d), (e), (g), [AND] (h), and (i) (sales and use tax); 8
* Sec. 3. AS 29.45.650(a) is amended to read: 9
(a) Except as provided in AS 04.21.010(c), AS 29.45.750, and in (f), (h), (i), 10
(j), (k), [AND] (l), and (m) of this section, a borough may levy and collect a sales tax 11
on sales, rents, and services provided in the borough. The sales tax may apply to any 12
or all of these sources. Notwithstanding other statutes, exemptions may be granted by 13
ordinance. A borough may wholly or partially exempt a source from a borough sales 14
34-LS0873\N
CSSB 162(STA) -2- SB0162B
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tax that is taxed by a city in that borough under AS 29.45.700. 1
* Sec. 4. AS 29.45.650 is amended by adding a new subsection to read: 2
(m) A borough may not levy or collect a sales or use tax on the value of the 3
gold or silver contained within specie during the sale or exchange of specie. This 4
subsection applies to home rule and general law municipalities. In this subsection, 5
"specie" has the meaning given in AS 44.12.400(d). 6
* Sec. 5. AS 29.45.700(a) is amended to read: 7
(a) A city in a borough that levies and collects areawide sales and use taxes 8
may levy sales and use taxes on all sources taxed by the borough in the manner 9
provided for boroughs. Except as provided in (d), (e), (g), [AND] (h), and (i) of this 10
section, the assembly may by ordinance authorize a city to levy and collect sales and 11
use taxes on other sources. 12
* Sec. 6. AS 29.45.700 is amended by adding a new subsection to read: 13
(i) A city may not levy or collect a sales or use tax on the value of the gold or 14
silver contained within specie during the sale or exchange of specie. This subsection 15
applies to home rule and general law municipalities. In this subsection, "specie" has 16
the meaning given in AS 44.12.400(d). 17
* Sec. 7. AS 44.12 is amended by adding a new section to read: 18
Article 5. Legal Tender. 19
Sec. 44.12.400. Legal tender. (a) To the fullest extent allowed by art. I, sec. 20
10, clause 1, of the Constitution of the United States, legal tender in the state includes 21
specie issued by 22
(1) the federal government at any time if the federal government 23
considers the specie legal tender; 24
(2) a foreign government if, at the time of a sale or exchange, the 25
foreign government considers the specie legal tender and the foreign government is 26
(A) recognized by the United States Department of State as 27
being the legitimate government of a country whose existence is recognized by 28
the United States and has not been designated as a foreign adversary under 29
federal law or regulation; 30
(B) a subnational unit of a government described in (A) of this 31
34-LS0873\N
SB0162B -3- CSSB 162(STA)
New Text Underlined [DELETED TEXT BRACKETED]

paragraph that is authorized by the laws of that government to issue its own 1
currency; or 2
(C) an international currency union made up exclusively of 3
countries described in (A) of this paragraph; or 4
(3) the state government if 5
(A) a court of competent jurisdiction, by final and unappealable 6
order, ruled the specie to be within state authority to designate as legal tender; 7
and 8
(B) the state government considers the specie legal tender. 9
(b) A person or governmental entity is not required to accept gold or silver 10
specie as tender. 11
(c) The Legislative Budget and Audit Committee shall study the possibility of 12
establishing additional forms of legal tender for the payment of debts, including public 13
charges, taxes, and other money owed to the state. The committee shall also study 14
consumer protections and consumer behavior related to the sale and use of specie. If 15
the committee determines that additional forms of tender are practical and beneficial, 16
the committee shall prepare legislation establishing an additional form of legal tender 17
for introduction. 18
(d) In this section, 19
(1) "legal tender" means a recognized medium of exchange for the 20
payment of debts; 21
(2) "specie" means gold or silver valued primarily based on its metal 22
content and in the form of 23
(A) coin; or 24
(B) bullion that is stamped or imprinted with its weight and 25
purity. 26