North Dakota has enacted only one of the seven policies measured by the Sound Money Score. The state exempts qualifying precious-metal bullion from sales tax, reducing the cost of acquiring investment-grade gold and silver.

The state has not enacted the remaining policies measured by C4SM. North Dakota 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 physical 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 sound money.

North Dakota has seen notable legislative activity in recent sessions. During the 2025 legislative session, lawmakers introduced bills to exempt precious-metals capital gains from state income tax, invest a portion of state funds in gold and silver, and recognize specie legal tender while addressing central bank digital currencies. Sadly, none of these proposals became operative law. HB 1379 (capital gains) advanced farther than many sound money bills in other states before ultimately failing. North Dakota may be one of the stronger candidates for future reform if similar legislation is reintroduced.

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

Yes

North Dakota exempts qualifying precious-metal bullion from state sales tax. State guidance also exempts legal-tender coins and currency from sales tax, and recognizes an exemption for qualifying precious-metal bullion meeting statutory requirements. The exemption generally applies to investment purchases rather than fabricated products such as jewelry.

North Dakota therefore receives one SMS point in this category.

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

No

North Dakota imposes a state income tax and generally follows the federal income tax system when determining taxable income.

The state has not enacted a general exemption for gains realized from the sale or exchange of gold, silver, or other precious metals.

House Bill 1379, introduced during the 2025 legislative session, would have allowed both individual and corporate taxpayers to deduct capital gains from the sale of qualifying gold and silver legal-tender coins and bullion. Although the bill advanced during the legislative process, it did not become operative law.

North Dakota therefore receives no SMS point in this category.

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

No

North Dakota has not enacted a statute recognizing gold and silver as legal tender for voluntary private transactions.

House Bill 1441, introduced during the 2025 session, proposed recognizing specie legal tender and addressing the treatment of central bank digital currencies. The proposal did not become law.

North Dakota therefore receives no SMS point in this category.

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

No

North Dakota does not currently operate a state precious-metals depository nor does it maintain any verified holdings of physical gold or silver as part of its state reserves.

House Bill 1183 proposed requiring the State Treasurer to invest at least one percent of state funds in gold and silver while studying the costs and benefits of such investments. The proposal would have permitted holdings through physical bullion, qualified custodians, exchange-traded products, or other investment instruments. Citizens for Sound Money would generally favor direct ownership of allocated physical bullion over paper substitutes. Regardless, the bill did not become operative law.

North Dakota therefore receives no SMS point in this category.

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

No

North Dakota does not currently provide a mechanism allowing taxpayers to pay state taxes, fees, or other public obligations with gold or silver. No current statute authorizes state agencies to receive precious metals directly or through a bullion-backed payment platform.

North Dakota therefore receives no SMS point in this category.

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

No

No current North Dakota statute specifically protects privately owned gold or silver from confiscation or compulsory surrender. General constitutional protections for private property and due process continue to apply. However, those protections are not equivalent to a precious-metals-specific anti-confiscation statute.

North Dakota 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 Dakota has not enacted a statute requiring courts to enforce contracts calling for payment in gold or silver by ordering delivery of the agreed metal. Private parties remain free to enter contracts involving precious metals under ordinary contract law, but no statute guarantees specific performance according to the agreed weight or quantity of metal. This means that Sound Money is being treated like a consumer good or product, rather than as money under contract law in North Dakota.

North Dakota therefore receives no SMS point in this category.

Use of Gold and Silver in Commerce:

North Dakota maintains an established private market for bullion dealers, coin shops, and precious-metals investors. The state's sales-tax exemption reduces the cost of acquiring qualifying bullion. Private parties remain free to exchange gold and silver by mutual agreement. However, North Dakota has not recognized precious metals as legal tender, established a bullion-backed payment system, or authorized payment of taxes in precious metals.

The 2025 legislative session demonstrated growing interest in sound money reforms through proposals involving legal tender, state bullion investments, and capital-gains tax relief. Citizens for Sound Money would encourage future legislation that recognizes the constitutional legal-tender status of gold and silver rather than creating new state-issued monetary instruments.

Strengths

* Sales-tax exemption for qualifying precious-metal bullion.
* Active legislative interest in sound money reforms.
* Established private bullion market.

Remaining Weaknesses

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

Legislative Opportunities

North Dakota could improve its Sound Money Score by:

* exempting gains from the sale of gold and silver from state income tax;
* recognizing gold and silver coin as constitutional legal tender while preserving voluntary acceptance;
* authorizing prudent state ownership of allocated physical bullion;
* allowing taxes and fees to be paid through fully reserved precious-metals accounts;
* adopting a precious-metals-specific anti-confiscation statute; and
* requiring courts to enforce voluntary precious-metals contracts according to their metallic terms.

Future legislation involving bullion-backed payment systems should distinguish between recognizing the constitutional legal-tender status of gold and silver and creating a new state-issued currency. Citizens for Sound Money supports the former approach and evaluates the latter carefully in light of Article I, Section 10 of the United States Constitution.

Summary

North Dakota currently earns one point under the Sound Money Score because qualifying precious-metal bullion is exempt from state sales tax.

Although lawmakers have recently introduced legislation addressing capital-gains taxation, state bullion investments, and legal-tender recognition, none of those proposals has become operative law. The state therefore continues to lack the remaining six policies measured by the SMS.

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