Are there licensing or dealer registration requirements for selling gold privately in Washington?
Executive summary
Washington changed its treatment of private sales of gold and other precious-metal bullion in 2025: under ESSB 5794 the state treats gross income from sales of precious metal bullion and “monetized bullion” as taxable retail sales starting Jan. 1, 2026, which triggers sales tax and B&O tax collection obligations for sellers [1] [2]. The Department of Revenue guidance says sellers who retail bullion must collect and remit retail sales tax and pay retailing B&O tax; wholesalers can transact tax-free only with a valid reseller permit and under the wholesale B&O rate [3] [1].
1. What the law now requires — taxes, not a new “license”
The relevant 2025 legislation (ESSB 5794 / Chapter 423) makes gross income from sales of precious metal bullion and monetized bullion taxable as sales of tangible personal property effective Jan. 1, 2026; Washington’s Department of Revenue tells retailers to collect retail sales tax and pay the retailing B&O tax on such sales [1] [2]. Industry commentary repeats that change: sellers will generally be responsible for collecting state (6.5%) plus applicable local sales taxes and remitting B&O tax at the retail rate on bullion sold at retail [4] [3].
2. Dealer registration vs. tax obligations — different systems
Available sources document tax collection and B&O reporting obligations but do not describe a new, specific “bullion dealer” licensing or registration regime in Washington. The Department of Revenue materials focus on tax classification and collection rules rather than establishing a separate dealer-registration requirement [1] [2]. Commentary from the Sales Tax Institute explains how retail vs. wholesale sales affect tax treatment (reseller permits for wholesale purchases) but does not cite a new licensing program [3].
3. Wholesale sales and reseller permits — an important exception
For wholesale transactions, buyers who present a valid reseller permit may purchase without immediate retail sales tax being collected; the sale’s gross income is then subject to B&O tax at the wholesale rate rather than retailing B&O, per state guidance and practitioner summaries [3]. That is a longstanding Washington mechanism for separating wholesale and retail tax responsibilities, now explicitly applied to bullion [3].
4. What “monetized bullion” and “precious metal bullion” mean legally
The statute and DOR guidance define “monetized bullion” (coins or other manufactured forms used as a medium of exchange) and “precious metal bullion” (metal refined so value depends on metal content, e.g., bars, ingots) — definitions that determine whether a particular item is now taxable as tangible personal property [2] [1]. Those definitions matter because they distinguish collectible or jeweler-use metal from bullion taxable as an investment product [2].
5. Conflicting or out-of-date claims in secondary sources
Several dealer and industry sites framed the change as a repeal of a longstanding exemption and warned of near‑10% tax impacts; they correctly cite the effective-date change but vary on timing and nuances [5] [6] [4]. Some third-party guides still assert exemptions or exemptions for certain coins; those claims conflict with the Department of Revenue’s updated guidance that, beginning Jan. 1, 2026, bullion and monetized bullion are taxable unless a statutory exception applies [1] [2]. Readers should prioritize the DOR materials and the bill text (ESSB 5794) over secondary commentary [1] [2].
6. Practical implications for private sellers
If you sell gold privately in Washington after Jan. 1, 2026, the available reporting advises treating the sale like retail tangible-personal-property: collect and remit retail sales tax and pay retailing B&O tax unless the transaction qualifies as wholesale with a reseller permit or another specific exemption [1] [3]. The guidance does not say private person-to-person casual sales are categorically exempt; available sources do not mention a private‑seller exemption distinct from the general tax rules [1].
7. How to proceed and where the record is authoritative
For compliance, consult Washington Department of Revenue publications “Sales of Precious Metal Bullion and Monetized Bullion Now Subject to B&O Tax and Retail Sales Tax” and the “Currency, Coins and Precious Metal Bullion” industry guide; those are the authoritative explanations cited across reporting [2] [1]. Secondary analyses (Sales Tax Institute, local dealers, media) provide useful practical context but sometimes amplify worst‑case figures or lag on nuances; defer to DOR for exact tax, reseller‑permit, and B&O requirements [3] [4].
Limitations and note on scope: these sources document the 2025 legislative change and DOR guidance about tax and reseller‑permit mechanics but do not describe any new, separate Washington “bullion dealer” licensing or registration program; available sources do not mention such a license [1] [2].