Prop 9 would exempt precious metals from property tax
Editor’s note: As a service to area voters, the Bay City Tribune will take each of the upcoming propositions on the Nov. 5 ballot. This is the first of a series of articles that will preview the upcoming propositions on the ballot.
Texas Proposition 9, the Precious Metals in Depositories Exempt from Property Tax Amendment, is on the ballot in Texas as a legislatively referred constitutional amendment.
• A “yes” vote supports this amendment to allow the legislature to exempt precious metals held in a precious metal depository from property taxation.
• A “no” vote opposes this amendment, thereby continuing to permit taxation of precious metals held in a precious metal depository as property.
Proposition 9 would allow the legislature to exempt precious metal held in precious metal depositories from property taxation. Approval of Proposition 9 would also enact House Bill 2859 (HB 2859), the legislation exempting precious metal held in precious metal depositories from property taxation. HB 2859 would define precious metals as a metal, «including gold, silver, platinum, palladium, and rhodium,» that «bears a high value-to-weight ratio» and «customarily is formed into bullion or specie.»
A precious metals depository is a facility where people can store their precious metals. The facilities often charge a fee based on the value of the stored metals and provide security and insurance. HB 2859 would consider depositories where precious metals can be stored without taxation to be those that (a) are “primarily engaged in the business of providing precious metal storage to the general public” and (b) maintain “sufficient insurance to cover precious metal deposited in the depository.”