Arizona bill SB 1439 passed the state legislature last month and would have allowed Arizona residents to use gold and silver with the same recognition as Federal Reserve notes starting in 2014.
However, Arizona Governor Jan Brewer vetoed the bill on Thursday.
In a letter to Arizona State Senate President Andy Biggs, Brewer said, “While I believe the concern over a devalued dollar as a result of an unsustainable federal deficit is justified, I am unable to support this legislation.”
“I believe the provisions in this legislation need to be more carefully examined and there should be prior coordination with those government agencies tasked with the oversight of these transactions,” she stressed.
“For example, it is unclear whether this legislation would require Arizona to exempt income tax related to a transaction involving collectable coins or bills that were originally authorized by Congress and may be used as legal tender,” Brewer said. “This would result in lost revenues to the state, while giving businesses that buy and sell collectible coins or currency originally authorized by Congress an unfair tax advantage.”
It is possible for the state legislature to over-ride the veto with a 2/3 vote. However this appears unlikely as the bill was passed with a smaller majority in an 18 to 10 vote.