Alaska Poised to Recognize Gold, Silver as Legal Tender Under HB 1

The Alaska State Senate passed House Bill 1 on May 11, 2026, by a vote of 19-1, sending legislation to Gov. Mike Dunleavy that would recognize gold and silver coins as legal tender and exempt precious metal transactions from local sales and use taxes. The House passed the measure unanimously 40-0 after working with municipalities, stakeholders, and legislators across the state.

The bill, sponsored by Representative Kevin McCabe of Big Lake, recognizes gold and silver coins or stamped bullion as legal tender to the fullest extent federal law allows. It ensures money itself is not taxed as a commodity through local sales or use taxes. Alaska would become the 12th state to reaffirm gold and silver as legal tender, according to McCabe and Senator Mike Cronk of Tok and Northway, who carried the Senate companion bill, SB 162.

HB 1 does not require any person or business to use or accept gold or silver coins. The bill preserves financial freedom and expands transaction choices for Alaskans who use constitutional forms of money.

"This bill is about constitutional fidelity, financial freedom, and individual choice," McCabe said. "Gold and silver have been recognized as lawful money since the founding of our nation. HB 1 simply ensures Alaskans are not penalized for choosing to use them."

McCabe noted Alaska does not have a state sales tax, and local municipalities do not track precious metal sales separately. Any potential local revenue impact is expected to be minimal but indeterminate, given the limited volume of these transactions in Alaska.

"A growing number of states have moved to reduce or eliminate taxation on precious metals and reaffirm the constitutional role of gold and silver as lawful money," Cronk said. "HB 1 ensures Alaska remains part of the conversation while protecting individual choice and economic freedom. It's a golden opportunity for the Last Frontier."

The bill also directs the Legislative Budget and Audit Committee to study the possibility of additional forms of legal tender should future technologies or monetary instruments emerge, ensuring Alaska remains forward-looking in financial policy discussions.

HB 1 now goes to Gov. Dunleavy for consideration.