FRANKFORT, KENTUCKY / ACCESS Newswire / March 26, 2025 / Slapping smalltime savers in the face for the second time in 12 months, Kentucky Gov. Andy Beshear has again vetoed a bill that would end sales taxes on purchases of precious metals.
House Bill 2, introduced by Rep. TJ Roberts, enjoyed overwhelming support in both chambers of the state legislature. Gov. Beshear's veto sets up a showdown a year in the making between the legislature and the state's top official.
Last year, Gov. Beshear purported to exercise a line-item veto of a gold and silver sales tax exemption that had been included in a 2024 revenue bill. At the time, he sneered at Kentucky smalltime savers and investors, saying, "if you own gold, you can afford to pay sales tax."
At the time, the legislature deemed Beshear's line veto invalid and directed that the provision be formally codified by the Revisor of Statutes (which did so).
State Attorney General Russell Coleman declared the governor's veto invalid in a detailed analysis that explained the line-item veto power only exists in the Kentucky constitution with respect to appropriations bills, which the bill at hand was not.
Ignoring the state constitution and findings by the state's top lawyer, though, the governor nevertheless directed the Kentucky Department of Revenue to continue collecting sales taxes on gold and silver purchases, threatening Kentucky businesses, savers, and investors with legal action if they did not pay.
That's why Roberts, a freshman legislator, introduced his House Bill 2 in January 2025, and the bill passed the state house by an overwhelming 76-17 and the state senate by another overwhelming vote of 30-6.
HB 2 also provides a mechanism for victimized Kentucky citizens to reclaim their unconstitutionally seized sales taxes on any gold or silver purchases since last summer.
The bill reads, "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."
In an interview with the Sound Money Defense League, lead sponsor Rep. Roberts noted, "Gov. Beshear's veto is disappointing but in-line with his tyrant tendencies. This governor is fighting tooth and nail to keep violating the U.S. Constitution as it regards gold and silver,"
The liberty-minded policymaker continued, "Last year, we repealed the gold and silver sales tax, but Andy Beshear persistently stood in the way of the will of the people. This year, I will make sure the legislature fulfills the will of the people of Kentucky."
If the legislature overrides the governor's veto as expected and HB 2 becomes law, taxpayers will be entitled to reimbursement of their attorney's fees and legal costs as well whilst seeking recovery of back taxes.
The state's GOP supermajority is expected to reconvene March 27th and 28th to override any of Gov. Beshear's vetoes.
The Sound Money Defense League and Money Metals Exchange have worked for years in Kentucky to pass sound money legislation. Kentucky aims to become the next state to end this tax on purchases of gold and silver.
jp.cortez@soundmoneydefense.org
208-258-2528
SOURCE: Sound Money Defense League
