Vermont currently has one of the least favorable tax environments for Sound Money and gold and silver ownership. The state generally subjects purchases of bullion and precious-metal coins to its sales and use tax, has not recognized gold and silver as legal tender under state law, and has not established a state bullion reserve, depository, or precious-metals payment system.

There is, however, evidence of legislative interest in fixing these economically unjust laws. House Bill 711 was introduced in January 2026 to exempt qualifying investment-grade gold and silver bullion and coins from sales and use tax. The bipartisan measure was referred to the House Committee on Ways and Means, but it did not advance into law during the 2025–2026 regular session.

Vermont is therefore best described as an early-stage sound money state. Residents may lawfully own and privately exchange precious metals, but state tax policy discourages their acquisition and practical use.

Vermont has not enacted a statute recognizing gold or silver as legal tender within the state.

Gold and silver coins issued by the United States retain their federal legal-tender status. Private parties may also agree voluntarily to exchange goods, services, or property for coins, bullion, or other valuable assets. Vermont has not, however, adopted a state framework that: declares gold and silver specie to be Vermont legal tender, authorizes state agencies to receive bullion for taxes or fees, protects precious-metal transactions from state taxation, establishes a bullion-backed payment platform, or directs courts to enforce monetary obligations specifically in gold or silver.

Vermont law also regulates businesses that purchase precious metals from the public, which causes additional friction to the monetary use of Gold and silver.

Vermont imposes sales and compensating use taxes under Title 32, Chapter 233. Precious metals are not presently included in the state’s enacted list of broadly exempt investment property. This means that purchases of bullion and coins may be subject to Vermont’s state sales tax, with possible additional local-option tax depending on where the sale occurs. This raises the acquisition cost of physical gold and silver and treats monetary metals more like ordinary consumer goods than investments or constitutional money.

Earlier legislation, including H.295 in 2023, proposed a limited exemption for sales of rare coins, bullion, and precious-metal tender when a transaction exceeded $1,000. Under that proposal, the first $1,000 would have remained taxable. The bill did not become law.

House Bill 711

H.B.711 was introduced on January 16, 2026, to establish a broader sales and use tax exemption for precious metals purchased for investment.

The proposal defined qualifying precious-metal bullion and coins as gold or silver property that:

* had undergone a refining process,
* derived its value primarily from precious-metal content, and
* included monetized bullion, coins, and other gold or silver money.

The proposed exemption would not have applied to jewelry, artwork, or precious metals processed primarily for industrial, professional, or artistic purposes.

The bill was referred to the House Committee on Ways and Means. Available legislative records show no passage by either chamber. Consequently, the exemption did not take effect on its proposed July 1, 2026 date.

Vermont also imposes an individual income tax and has not enacted any exemption for gains on gold or silver.

Vermont’s income-tax calculation is connected to federal taxable income. Consequently, a federally recognized gain from selling appreciated bullion may generally affect a Vermont resident’s state taxable income unless an applicable deduction or exclusion applies. Vermont provides certain general capital-gains exclusions, but these are not specific protections for constitutional money. The state has not declared that exchanging gold or silver constitutes a tax-neutral exchange of money.

This creates two layers of possible state taxation:

1. Sales tax when the resident acquires the metal.
2. Income tax when the resident later sells or exchanges it at a nominal gain.

That treatment presents a substantial obstacle to using gold and silver as either savings or currency.

Precious-Metals Dealers and Banking Infrastructure

Vermont regulates certain precious-metal dealers under Title 9, Chapter 97A. These provisions govern businesses that purchase precious metals and may include recordkeeping, identification, holding-period, or law-enforcement requirements. These regulations are intended to address consumer protection and the trafficking of stolen property, but also prevent the development of a monetary framework for precious-metal commerce. Coin shops, private vaults, online dealers, and conventional financial institutions may provide lawful precious-metals services, but the state has not created dedicated bullion banking infrastructure.

Vermont’s sales tax complicates any attempt to estimate local demand or use of precious metals. Residents prefer to purchase metals from out-of-state dealers, travel to jurisdictions with more favorable tax rules, or use private secondary markets. Those transactions do not appear in Vermont business data.

The sales tax is a particularly serious barrier to commercial circulation. A Vermonter acquiring bullion for savings or future exchange may owe tax at the time of purchase. If the metal later appreciates in dollar terms and is sold or exchanged, the owner may also face income-tax consequences.

This combination discourages the repeated circulation of precious metals and makes them less practical as money in Virgina.

Recent Legislative Activity

H.711 represented Vermont’s most important recent sound money proposal.

The bill would have exempted qualifying investment gold and silver bullion and coins from sales and use tax. It included monetized bullion and other forms of gold or silver money while excluding jewelry, artwork, and industrial products.

The measure attracted sponsors from both political parties, demonstrating that precious-metals tax relief has potential bipartisan appeal. Nevertheless, it remained in the House Committee on Ways and Means and did not become law during the session.

Earlier Limited Exemption Proposal:

H.295, introduced in 2023, proposed exempting qualifying sales of bullion, coins, and precious-metal tender when a transaction was valued at $1,000 or more. The first $1,000 would still have been taxable.

Although that bill did not pass, it helped establish a legislative record for ending the taxation of precious metals. H.711 represented an improvement by proposing a clearer investment-metals exemption without the same limited structure.

Overall Assessment

Vermont has not yet enacted the foundational reforms necessary for a strong sound money environment. Its current policy taxes the acquisition of physical precious metals, provides no specific income-tax neutrality, and offers no legal or institutional framework for using gold and silver as money.

The introduction of H.711 is nevertheless an encouraging sign. It demonstrates growing awareness that taxing investment bullion harms savers, local dealers, and the competitiveness of Vermont businesses.

Opportunities for action:

* Reintroduce and enact H.711 or a comparable bullion sales-tax exemption.
* Include gold, silver, platinum, and palladium in a comprehensive exemption.
* Avoid minimum-purchase thresholds that favor wealthier buyers over small savers.
* Recognize gold and silver as legal tender for voluntary transactions.
* Exempt exchanges of constitutional money from state income taxation.
* Protect the enforcement of voluntary gold-clause contracts.
* Authorize the State Treasurer to hold a prudent allocation of physical bullion.
* Permit selected state taxes and fees to be paid through a bullion-backed system.
* Study the effects of Vermont’s tax policy on local dealers and cross-border purchases.

Bottom Line:

Vermont remains in the early stages of the sound money movement. The state generally taxes purchases of physical gold and silver, does not recognize the metals as state legal tender, has no dedicated exemption for precious-metal gains, and maintains no bullion reserve or payment infrastructure. There is no reliable count of how many Vermonters own gold or silver, and the use of metals in commerce appears limited to private barter and isolated voluntary acceptance. H.711 provided a credible path forward by proposing a sales and use tax exemption for investment-grade gold and silver. Although the bill did not become law in 2026, its bipartisan sponsorship gives sound money advocates a foundation for renewed action.

Our first priority should be ending Vermont’s sales tax on investment metals. Gold and silver are not consumed like ordinary retail merchandise. They are held as savings, monetary assets, and protection against the declining purchasing power of paper currency. Removing the sales tax would protect Vermont families, strengthen local bullion businesses, and establish the foundation for broader legal-tender and tax-neutrality reforms.