New Mexico currently satisfies none of the seven policies measured by the Sound Money Score. The state subjects ordinary purchases of investment-grade gold and silver to its gross receipts tax, creating a substantial barrier to precious-metals ownership and commerce.

New Mexico also lacks a precious-metals capital-gains exemption, legal-tender recognition, a state depository or physical bullion reserve, a mechanism for paying taxes in precious metals, anti-confiscation protections, and statutory enforcement of precious-metals contracts.

Lawmakers have recently attempted to remove the tax on bullion purchases. Senate Bill 382 was introduced in 2025, and Senate Bill 174 was introduced in 2026. Both would have allowed sellers to deduct receipts from qualifying gold and silver sales from taxable gross receipts. Neither proposal became law. Senate Bill 174 was postponed indefinitely on January 29, 2026.

1. Are Purchases of Precious Metals Exempt from Sales Tax?

No

New Mexico imposes a gross receipts tax on businesses selling property in the state. Although the tax is formally imposed on the seller, it is commonly passed through to the purchaser in a manner similar to a conventional sales tax. New Mexico does not provide a general exemption or deduction for retail sales of investment-grade gold and silver bullion. Limited deductions may apply to transactions involving resale or sales to jewelers, and certain legal-tender transactions may receive different treatment, but ordinary purchases of bullion remain taxable.

Senate Bill 382, introduced in 2025, would have created a gross receipts tax deduction for sales of gold or silver coins, bars, ingots, and rounds. The proposal did not become law.

Senate Bill 174 renewed the proposal during the 2026 session. It would have provided a temporary deduction for qualifying gold and silver sales through June 30, 2031. The bill was postponed indefinitely and died without receiving a vote.

These bills make us hopeful that New Mexico may be willing to move in the right direction soon and join the majority of states that treat gold and silver as money, at least by exempting Sound Money from sales tax.

2. Are Sales of Precious Metals Exempt from Capital Gains Tax?

No

New Mexico imposes an individual income tax, and gains from selling gold or silver generally enter the state tax calculation through federal adjusted gross income. State law provides a limited general deduction for certain net capital-gain income, but it does not specifically or fully exempt gains from precious metals. Because the Sound Money Score measures a dedicated exemption removing state taxation from gold and silver gains, New Mexico does not qualify for a point. No recent bill reviewed for this report would establish a complete precious-metals capital-gains exemption.

3. Does the State Have Legal Tender Recognition for Gold and Silver?

No

New Mexico has not enacted a statute recognizing gold and silver coin as legal tender for voluntary private transactions. The recent bullion tax proposals addressed gross receipts taxation but did not establish legal-tender recognition.

4. Does the State Maintain a State Precious Metals Depository or Hold State Funds in Gold or Silver?

No

New Mexico does not operate a state precious metals depository or own any physical gold or silver as part of its reserve assets.

5. Does the State Have Any Mechanism to Accept Tax Payments in Precious Metals?

No

New Mexico does not permit taxpayers to pay state taxes, fees, or other public obligations using physical gold or silver. The state also does not maintain a fully reserved precious-metals account or payment platform through which bullion ownership could be transferred to satisfy a tax obligation.

6. Does State Law Include Any Anti-Confiscation Protections for Gold or Silver?

No

New Mexico has not enacted a statute specifically protecting privately owned gold or silver from confiscation, requisition, or compulsory surrender by the state. General constitutional protections for private property and due process remain applicable, but they are not equivalent to a precious-metals-specific anti-confiscation law.

7. Does the State Have a Statute Enforcing Precious Metals Contracts Through Payment in Precious Metals Rather Than Dollars?

No

New Mexico has not enacted a statute requiring courts to enforce contracts calling for payment in gold or silver through delivery of the agreed metal.

Use of Gold and Silver in Commerce

New Mexico has an active private market for bullion, coins, and precious-metals investment. Private parties may voluntarily buy, sell, or accept gold and silver by mutual agreement.

The gross receipts tax remains a significant obstacle to wider ownership and use. It increases the cost of acquiring physical metal and places New Mexico dealers at a competitive disadvantage compared with businesses in states that exempt bullion, including all of its neighbors.

The tax also impedes regular sound money commerce. Applying gross receipts tax to each exchange discourages citizens from treating gold and silver as money and instead penalizes them as taxable merchandise.

The introduction of bullion tax repeal legislation in both 2025 and 2026 demonstrates continuing interest in reform. The repeated failure of these proposals, however, leaves New Mexico behind the large majority of states that no longer impose a sales-type tax on investment-grade precious metals. The 2026 legislative fiscal analysis itself stated that New Mexico was among only a small group of jurisdictions still taxing bullion and coins.

Strengths

Active private market for bullion and coins.
Recent legislative interest in removing gross receipts tax from gold and silver purchases.
Recent proposals focused on removing a tax barrier rather than creating a constitutionally questionable state-issued currency.

Remaining Weaknesses

Gross receipts tax on ordinary purchases of investment-grade gold and silver.
No precious-metals capital-gains exemption.
No legal-tender recognition.
No state precious metals depository.
No state ownership of physical gold or silver reserves.
No mechanism for paying taxes in precious metals.
No precious-metals-specific anti-confiscation statute.
No statute requiring enforcement of precious-metals contracts through payment in metal.

Legislative Opportunities

New Mexico should enact a permanent and comprehensive gross receipts tax deduction for investment-grade gold and silver coins and bullion. Unlike the temporary deduction proposed in Senate Bill 174, a future bill should avoid an expiration date. Gold and silver should receive permanent treatment comparable to other investments rather than remain subject to recurring legislative uncertainty.

The state could also improve its Sound Money Score by:

Recognizing gold and silver coin as legal tender while preserving voluntary acceptance.
Exempting gains from gold and silver from state income taxation.
Authorizing prudent ownership of allocated physical bullion as part of state reserves.
Permitting taxes and fees to be paid through fully reserved private precious-metals accounts.
Protecting privately owned precious metals from confiscation or compulsory surrender.
Requiring courts to enforce voluntary precious-metals contracts according to their metallic terms.

Citizens for Sound Money has a clear opportunity to support renewed bullion tax legislation while encouraging lawmakers to make the exemption permanent, broadly applicable, and free of minimum purchase thresholds.

Summary

New Mexico currently earns no points under the Sound Money Score. The state continues to impose gross receipts tax on ordinary bullion purchases and has not enacted any of the other six policies measured by the report.

Senate Bill 382 in 2025 and Senate Bill 174 in 2026 demonstrate growing legislative awareness of the bullion tax problem. Neither became law, and Senate Bill 174 was postponed indefinitely on January 29, 2026. New Mexico therefore remains a strong candidate for a renewed campaign focused first on eliminating the gross receipts tax on gold and silver.

New Mexico Sound Money Score: 0 of 7