North Carolina has enacted one of the seven policies measured by the Sound Money Score. The state exempts investment coins, investment bullion, and certain non-coin currency from sales tax, providing a favorable environment for acquiring precious metals.

The state has not yet enacted the remaining six policies measured by this report. North Carolina does not currently exempt precious-metals capital gains from state income tax, recognize gold and silver as legal tender, maintain a state precious-metals depository or verified bullion reserve, accept tax payments in precious metals, provide a specific anti-confiscation protection, or require courts to enforce precious-metals contracts through delivery of the agreed metal.

North Carolina has become one of the more active states for sound money legislation in recent years. During the 2025-2026 legislative session, lawmakers introduced the North Carolina Sound Money Act (House Bill 836). The bill would recognize qualifying gold and silver investment coins and bullion as legal tender while preserving voluntary acceptance and exempting gains realized when precious metals are used as a medium of exchange from state income taxation. As of July 2026, however, the bill remains pending and has not become operative law.

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

Yes

North Carolina exempts sales of investment coins, investment metal bullion, and qualifying non-coin currency from state sales and use tax. State law defines investment coins as numismatic coins or other forms of legal tender manufactured under the laws of the United States or a foreign nation that have a fair market value greater than their face value. Investment metal bullion consists of refined precious metals whose value depends primarily on their metal content rather than their form. The exemption became effective July 1, 2017, and applies without a minimum purchase threshold.

North Carolina therefore receives one SMS point in this category.

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

No

North Carolina imposes an individual income tax, and gains from the sale or exchange of precious metals are generally included in state taxable income. .

House Bill 836 would allow taxpayers to deduct gains realized when qualifying investment coins and bullion are used as payment. While this proposal represents meaningful progress toward removing tax barriers to sound money, it has not become law.

North Carolina therefore receives no SMS point in this category.

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

No

North Carolina has not enacted a statute recognizing gold and silver as legal tender.

House Bill 836 would recognize qualifying investment coins and investment bullion made of refined gold or silver and marked with their weight and purity as legal tender within the state. Importantly, the bill expressly provides that no person would be required to offer or accept such legal tender except by voluntary agreement or as otherwise required by law. This approach is consistent with the constitutional sound money model supported by Citizens for Sound Money because it recognizes the legal-tender status of gold and silver rather than creating a new state-issued currency.

As of July 2026, House Bill 836 has not become operative law.

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

No

North Carolina does not operate a state precious-metals depository nor does the state currently own verified, allocated 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

North Carolina does not currently permit taxpayers to pay state taxes or other public obligations directly with gold or silver. Neither current law nor House Bill 836 establishes a bullion-backed payment platform or authorizes state agencies to accept precious metals in satisfaction of taxes or fees.

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

No

No current North Carolina statute protects privately owned gold or silver from confiscation or compulsory surrender. General constitutional protections for private property remain available, but those protections are not equivalent to a precious-metals-specific anti-confiscation statute.

North Carolina therefore receives no SMS point in this category.

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

No

North Carolina 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

North Carolina has a mature private precious-metals market supported by bullion dealers, coin shops, and investors throughout the state. The sales-tax exemption has made the state more attractive for purchasing investment-grade bullion and coins.

House Bill 836 demonstrates significant legislative interest in expanding the role of sound money in commerce. Unlike proposals in some other states that would create new state-issued transactional currencies, House Bill 836 follows the constitutional recognition model by acknowledging the legal-tender status of qualifying gold and silver while preserving voluntary acceptance.

If enacted, the bill would substantially improve North Carolina's legal framework for the use of precious metals in everyday commerce and is supported by C4SM.

Overall Assessment

Strengths

* Sales-tax exemption for investment coins, bullion, and qualifying non-coin currency.
* Strong current legislative interest in constitutional sound money reforms.
* House Bill 836 follows a constitutional legal-tender recognition model rather than creating a new state-issued currency.
* Established private precious-metals market.

Remaining Weaknesses

* No precious-metals capital-gains exemption.
* No enacted legal-tender recognition.
* No state precious-metals depository.
* No verified state holdings of physical bullion.
* No mechanism for paying taxes in precious metals.
* No anti-confiscation statute.
* No statute requiring courts to enforce precious-metals contracts through payment in metal.

Legislative Opportunities

North Carolina could improve its Sound Money Score by:

* enacting House Bill 836 or similar legislation recognizing qualifying gold and silver as legal tender;
* eliminating state taxation of gains from the sale or use of precious metals;
* authorizing taxpayers to pay state obligations through fully reserved precious-metals payment systems;
* authorizing prudent ownership of allocated physical bullion as part of state reserves;
* adopting a precious-metals-specific anti-confiscation statute; and
* requiring courts to enforce voluntary precious-metals contracts according to their metallic terms.

Because House Bill 836 follows the constitutional recognition model, it provides a strong foundation for future sound money reforms while avoiding the constitutional concerns associated with proposals that create new state-issued currencies.

Summary

North Carolina currently earns one point under the Sound Money Score because investment coins and bullion are exempt from state sales tax.

The state has become one of the more promising jurisdictions for future sound money reform. House Bill 836 would recognize qualifying gold and silver as legal tender while preserving voluntary acceptance and reducing state tax barriers to their use. Although the bill has not yet become law, it represents one of the stronger constitutional sound money proposals introduced during the 2025-2026 legislative session.

**North Carolina Sound Money Score: 1 of 7**