What are Washington state's laws on private sale of precious metals like gold and silver?
Executive summary
Washington repealed a long-standing sales-tax exemption for “precious metal bullion” and “monetized bullion” in 2025; under ESSB 5794 those sales become taxable effective Jan. 1, 2026 (the Department of Revenue says gross income from such sales will be subject to retail B&O and retail sales tax) [1] [2]. Industry outlets and dealers report the change will make purchases of gold and silver effectively subject to roughly the state sales rate plus local levies — a potential near‑10% tax on retail bullion when local rates are added — and dealers are warning customers to act before the change [3] [4].
1. What the law changes, in plain language
The state Legislature’s 2025 package (ESSB 5794 / Chapter 423, Laws of 2025) removes precious‑metals sales from the exemption that had treated bullion and monetized bullion differently; the Department of Revenue states that beginning Jan. 1, 2026, sales of precious metal bullion (bars, processed nuggets, etc.) and monetized bullion (coins used as money) are no longer excluded from wholesale/retail sale definitions and are taxable as tangible personal property — meaning sellers must report retail B&O and collect retail sales tax on gross receipts [1] [2].
2. How the state defines the items now covered
Washington’s guidance distinguishes “precious metal bullion” — processed, smelted or refined metal valued by metal content — from “monetized bullion” — coins or other forms of metal money used as a government exchange medium. The statutory and DOR language governs both standard bullion bars/ingots and monetized coins unless a statutory carve‑out applies [2] [5].
3. Practical effect for buyers and dealers
Dealers and observers say the repeal shifts the economics of retail bullion purchases: retailers will have to add sales tax at the point of sale (state rate plus local taxes), which some outlets calculate could approach 10% in some locations when local rates are included; industry stories and local reporting urged customers to buy before the change takes effect [3] [4]. Dealers also note that whether a seller has an obligation to collect can depend on business nexus rules, but the Department of Revenue’s guidance is clear that taxable status changes Jan. 1, 2026 [1] [2].
4. Timeline and legislative context
The repeal was part of a broader 2025 revenue and tax‑preference package that lawmakers said followed audit recommendations and budget needs; DOR references ESSB 5794 and related WAC changes and cites an effective taxable date of Jan. 1, 2026 for bullion sales [1] [2]. Industry commentary documents the Legislature’s action and notes opposition from numismatic and bullion groups, which argued the exemption supported local businesses [6] [7].
5. Disagreements and competing viewpoints
Advocates for repeal framed the change as closing an inconsistent tax preference identified in audits; proponents argued it aligns bullion with other tangible personal property [1] [2]. Dealers, collector groups, and trade associations call the repeal a setback for local businesses and collectors and warn of competitive harm and higher consumer costs [6] [7] [8]. News and dealer sites emphasize the immediate consumer impact; the official DOR guidance focuses on taxation mechanics and statutory definitions [2] [3].
6. What's left unclear or not in the sources
Available sources do not mention how Washington will treat out‑of‑state internet sales in every nexus scenario or whether specific coin types (e.g., numismatic vs. bullion or commemoratives) will retain any carve‑outs beyond the statutory definitions — DOR materials give definitions but administrative details and potential exceptions are not exhaustively described in the provided reporting [2] [5]. Also not found in current reporting: any detailed administrative rules about retailer collection thresholds or transition guidance for small sellers beyond the broad effective date [1].
7. How to act or follow up
If you buy or sell bullion in Washington, verify the DOR’s current guidance and watch for WAC or DOR rule updates before Jan. 1, 2026; dealers have already begun public advisories recommending purchases before the tax change and tax‑computation systems say they will apply local rates by ZIP code when the law takes effect [3] [7]. For disputed points (narrow exemptions, nexus questions, treatment of numismatic collectibles) consult the Washington Department of Revenue publications and, if needed, a tax attorney — the DOR pages and industry summaries remain the primary sources cited by both government and trade press [2] [9].
Limitations: this summary uses the Department of Revenue guidance and contemporaneous industry reporting supplied here; it does not attempt to interpret later administrative rules or unpublished agency guidance that may appear after these sources [1] [3].