I shared this link on Facebook, but I thought it was interesting enough to note here as well… Louisiana Bans Using Cash In Sales Of Second-hand Goods:
In a new law that could put every trading post, Goodwill, flea market, garage sale and Craigslist merchant in the state of Louisiana out of business, a bipartisan group of elected representatives has opted to ban all cash payments for the buying and selling of used goods.
Though House Bill 195 was intended to make it easier to track the sales of stolen goods by giving police a paper trail to follow, the unintended consequences could be much more widespread. Namely, the law requires second-hand sales be made paid for with credit cards, paper checks, electronic transfer or money orders. Cash is prohibited.
It was signed into law on July 1, but flew so far under the radar that practically nobody in the media noticed until this week, when Louisiana’s KLFY Eyewitness News 10 put a spotlight on the new rules and their likely impacts on local business.
The law also requires second-hand sellers to obtain personal information about each buyer — information like names, addresses, driver’s license number and even, if applicable, their license plate number — and turn it over to state officials.
The prohibition on cash sales is confusing on its face, and appears to contradict the very text on each Federal Reserve note in circulation. “This note is legal tender for all debts, public and private,” U.S. dollars plainly state.
My concerns are that this idea will travel to other states and be used to further sales tax collections, reporting, etc. as well. Thoughts, anyone?
Image Credits: Wikipedia.