How do Washington tax rules for gold and silver transfers compare to federal tax treatment?

1. Washington overturned a decades‑old sales‑tax exemption

For roughly 40 years Washington treated qualifying bullion and monetized bullion as excluded from retail and wholesale sales taxation; ESSB 5794 removes that exclusion so gross income from sales of refined gold, silver bars and many coins becomes subject to retail sales tax and retailing B&O tax starting Jan. 1, 2026 ^{[2] [1]}.

2. What taxpayers and dealers will actually pay

The Department of Revenue says gross income from sales of precious metal bullion and monetized bullion will be taxed as sales of tangible personal property, and retailers must collect retail sales tax and report retailing B&O tax on those transactions; commissions on such sales remain subject to service‑and‑other‑activities B&O tax ^{[2] [3]}.

3. How large the sales‑tax bite can be in practice

Local plus state sales tax in Washington can push the effective rate well above the state base; press and industry coverage estimate the combined burden could approach about 10% in some localities — for example, commentators calculated roughly $300 tax on a $3,300 ounce of gold if taxed at ~10% — and reporting warns businesses and buyers the cost will matter to prices and sales patterns ^{[4] [5] [6]}.

4. The legislative and fiscal context

Multiple outlets and industry groups frame the repeal as part of a broader 2025 revenue package and a response to recommendations from the state’s tax‑preference review; proponents cast it as closing an obsolete preference, while the numismatic and bullion trade call it a setback that will hurt dealers and collectors ^{[7] [6] [1]}.

5. Where Washington’s rules diverge from federal treatment—what sources say

The provided sources describe only Washington’s imposition of sales tax and B&O tax on bullion ^{[2] [1]}. They also advise buyers to consult professionals for “current and accurate” federal and state tax consequences ^[6]. Available sources do not mention detailed federal income‑tax treatment (capital gains, collectible tax rates, or like‑kind exchange rules) for bullion transactions in this dataset — those federal rules are not described here (not found in current reporting).

6. Practical implications for buyers, dealers and cross‑border shoppers

Dealers and commentators interviewed warn that sales taxes alter the economics of buying physical metal in‑state: dealers expect reduced competitiveness, and customers may consider out‑of‑state purchases to avoid Washington sales tax; industry advisories and local reporting note businesses are preparing to collect taxes and to reprice inventory accordingly ^{[5] [6] [4]}.

7. Competing narratives and implicit agendas

State sources frame the change as statutory clarification and revenue policy ^{[1] [2]}. Industry outlets, dealers and advocacy groups present it as punitive to collectors and an economic blow to a niche sector; advocacy sites sympathetic to “sound money” view the move as contrary to recognizing gold and silver as money ^{[7] [8]}. These perspectives reflect different agendas: state revenue realism vs. bullion‑market protectionism ^{[7] [8]}.

8. What to watch next and recommended steps

The Department of Revenue references WAC guidance and special notices for implementation details; industry sources urge buyers and dealers to budget for the tax beginning Jan. 1, 2026, and to consult tax professionals on interplay with federal income taxes and potential exemptions or classifications ^{[1] [2] [6]}. For questions about federal reporting, the present set of sources recommends seeking qualified tax advice because federal rules are not covered here (not found in current reporting).

Limitations: this analysis relies only on the documents and reporting provided. Federal tax mechanics for bullion sales (capital‑gains rates, collectibles treatment, or IRS forms) are not included in the available sources and therefore are not evaluated here (not found in current reporting).