Are private sales of gold and silver subject to Washington state sales tax?
Executive summary
Washington repealed its long-standing sales-tax exemption for precious-metal bullion and monetized bullion in 2025; the state Department of Revenue says gross income from sales of bullion will be taxable starting Jan. 1, 2026 (DOR guidance and statute references) [1] [2]. Industry reporting and dealers say that means buyers in many parts of Washington could pay the standard state rate (6.5%) plus local taxes — in some areas approaching roughly 10% total — when purchasing gold, silver, and many coins after the effective date [3] [4].
1. What changed: law and effective dates
The Washington Legislature passed bills in 2025 that repeal the previous exemption for precious metal bullion and monetized bullion; the Department of Revenue’s notices and industry guides say the repeal makes those sales subject to retail sales tax and B&O tax, with changes effective either October 1, 2025 for some provisions and Jan. 1, 2026 specifically for bullion sales according to different DOR pages and summaries [1] [2] [5].
2. How the Department of Revenue describes taxable items
Washington’s DOR defines “precious metal bullion” as metal that has been smelted or refined and whose value depends on content rather than form, and “monetized bullion” as coins or other forms of money manufactured from those metals; DOR guidance explicitly states gross income from sales of those items is now taxable under the updated rules [2] [1] [6].
3. What kinds of transactions are likely affected
The repeal targets routine bullion and monetized-bullion sales — bars, standard bullion coins, and similar items where value is primarily metal content — and shifts them from the prior wholesale/retail exclusion into the taxable category, meaning typical retail purchases by consumers will be subject to retail sales tax and sellers must collect and report taxes [1] [7].
4. How large the tax bite may be — statewide and local context
Multiple trade and local media outlets report the practical result will be application of Washington’s standard sales tax structure to bullion transactions: the state rate (commonly cited as 6.5%) plus applicable local and county levies, which in some jurisdictions can push total rates near or above 10% — a figure vendors and dealers have been using to describe the post-repeal burden [3] [4] [5].
5. Industry reaction and practical consequences
Dealers and coin-shop owners quoted in local coverage warn the tax could drive Washington customers to neighboring states or reduce physical bullion demand; industry commentary frames the tax as a sudden penalty on investment purchases and as likely to reduce in-state commerce related to precious metals [3] [5] [8].
6. Alternate perspectives and state rationale
State-level reporting and the legislative package point to revenue and tax-preference reviews as motivating factors: the repeal was part of a broader effort to address budget shortfalls and follow JLARC recommendations to sunset or clarify exemptions, according to summaries of the legislative intent in the available sources [9] [5] [8].
7. What remains ambiguous or not covered in reporting
Available sources do not mention precise administrative rules for seller exemptions or thresholds (for example, whether certain types of numismatic coins or institutional transfers will retain exclusions beyond the general definition) beyond the DOR’s general guidance; they also offer differing effective dates for related provisions, so buyers and dealers must consult the DOR pages and the final statute text for transaction-level details [1] [6].
8. What to do if you buy or sell bullion in Washington
Sellers should prepare to collect and remit retail sales tax and retailing B&O as described by the Department of Revenue and update point-of-sale systems; some dealers note customers should consider purchase timing or out-of-state alternatives before the change takes effect [1] [5] [3].
Limitations: My summary relies only on the provided reporting and Washington DOR pages; specific transactional exceptions, final WAC rule language, and any subsequent clarifications or court challenges are not in those sources and therefore not reported here [1] [6].