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How should private sellers report proceeds from selling gold to Washington State Department of Revenue?
Executive Summary
Private sellers face conflicting analyses about whether proceeds from selling gold in Washington State are taxable or must be reported as sales subject to Business & Occupation (B&O) and retail sales taxes beginning January 1, 2026. Some Department of Revenue summaries say precious‑metal bullion sales are generally exempt, while other analyses and notices indicate a change requiring sellers to report and possibly collect tax after that date [1] [2] [3] [4].
1. What the competing claims say — a direct read of the key assertions
The materials present three competing claims about reporting gold‑sale proceeds. One analysis asserts that as of January 1, 2026 private sellers must report proceeds as sales of tangible personal property and will be subject to B&O and retail sales tax [1]. Another Department of Revenue summary, dated April 1, 2025, states that sales of precious‑metal bullion by private sellers are generally exempt from B&O and retail sales tax unless the metal is incorporated into manufactured goods like jewelry [2]. A separate November/September 2025 analysis echoes the January 1, 2026 change, indicating private sellers must collect sales tax from end consumers and report under Retailing classification for B&O, with wholesales treated differently if a reseller permit is provided [3]. These are the primary, conflicting claims in the record [1] [2] [3] [4].
2. How official guidance and oversight reports frame the problem — two different perspectives
The Department of Revenue’s guidance [2] frames precious‑metal bullion sales as exempt, emphasizing that private sellers typically do not owe B&O or retail sales tax unless they transform bullion into a manufactured product. This makes the exemption the operative default in that guidance. In contrast, other Department summaries and analyses [1] [3] describe an upcoming regulatory change effective January 1, 2026 that would shift sales of gold into the taxable category for sellers, requiring reporting as tangible personal property. Legislative oversight reporting referenced in the record [4] complicates the picture further by describing tax preferences that treat sales as exempt but require reporting of commission income only, suggesting no separate “gold‑proceeds” return, which creates ambiguity for private sellers deciding whether to report proceeds or only commission income [4].
3. Practical implications for sellers — what each outcome would mean in practice
If the exemption view prevails, private sellers would not remit retail sales tax or B&O tax on gross proceeds from selling bullion and would not need a special reporting line for those sales, though any commission income must be reported as business income [2] [4]. If the January 1, 2026 rule applies as some documents assert, private sellers would need to collect sales tax from retail buyers, report gross income under the Retailing classification for B&O, and classify sales to resellers as Wholesaling when a valid permit is provided [3] [1]. The JLARC framing adds a third practical outcome: sellers may not file a distinct gold‑sales return but must ensure commission and business activity are correctly classified on existing returns [4]. Each path has different recordkeeping, registration, and collection consequences for sellers.
4. Where the conflicts come from — timing, scope, and audience of guidance
The record shows timing and scope as the main sources of conflict. One set of documents explicitly references a January 1, 2026 effective date for changing treatment of bullion sales [1] [3], while other guidance from 2025 continues to assert a general exemption [2]. Differences also stem from scope: Department guidance that focuses on bullion as a product treats it differently from manufactured items, while other notices treat sales broadly as tangible personal property. Oversight reports emphasize that commission income and reseller transactions complicate a simple exemption-versus-tax binary, suggesting that how the seller operates (agent vs. seller, retail vs. wholesale) changes tax obligations [4]. These distinctions explain why summaries aimed at different audiences reach different conclusions.
5. Bottom line and recommended immediate steps for private sellers
Given the conflicting analyses, the most prudent course for private sellers is to treat the situation as unsettled: review the specific Department of Revenue notices cited here, confirm whether the January 1, 2026 change is finalized for their transaction type, and determine whether they are acting as a principal or an agent (which affects whether only commissions are taxable) [1] [2] [3] [4]. Sellers should register with the Department if they expect ongoing sales, retain documentation of buyer status (reseller permits), and consult the Department’s current guidance and Special Notices. The sources in the record show valid but conflicting positions; sellers must verify which applies to their facts rather than relying on a single summary [2] [4].