Are private gold and silver transfers considered taxable tangible personal property in Washington?
Executive summary
Washington historically exempted sales of qualifying gold and silver bullion and monetized coins from retail sales tax, but the legislature passed changes that make sales of precious-metal bullion and monetized bullion taxable as sales of tangible personal property effective Jan. 1, 2026 (Washington Dept. of Revenue) [1] [2]. Personal property used in business remains generally taxable under Washington’s personal property tax rules unless specifically exempted [3] [4].
1. What the law now says about bullion sales: the tax shift
State guidance from the Washington Department of Revenue makes the change plain: beginning Jan. 1, 2026, gross income from sales of precious metal bullion and monetized bullion are taxable as sales of tangible personal property; those sales “are no longer excluded from the definition of a wholesale or retail sale,” meaning retail sales tax and B&O tax apply [1] [2].
2. Distinction between sales tax and personal property tax
There are two separate frameworks at play. The retail sales and B&O rules treat sales of bullion as retail sales of tangible personal property (triggering sales tax) starting in 2026 [1] [2]. Separately, local personal property tax applies to tangible personal property used in a business and generally taxes all tangible personal property unless exempted — that long-standing regime remains in effect for business assets [3] [4].
3. Private transfers: where the sources are silent
Available sources do not explicitly address private, person-to-person transfers of gold or silver (for example, gifts or private barter) and whether those transfers are treated as taxable retail sales or as taxable personal property transfers under the new law. The DOR materials describe sales and gross income from sales being taxable [1] [2], but they do not explicitly define how casual private transfers are enforced or reported.
4. Capital gains and tangible property: a separate tax exposure
Washington also taxes certain capital gains, and some reporting guides have listed tangible personal property located in Washington among assets that can trigger capital gains tax exposure for residents [5]. That tax targets gains on sale, distinct from sales tax/B&O tax applied at the point of sale [5]. The sources establish both regimes exist; they do not conflate them [5] [2].
5. Industry reaction and political context
Dealers, collectors and trade outlets documented the legislative rollback of the long-standing bullion exemption and predicted commercial impact; industry groups called the repeal a blow to dealers and investors, and local reporting framed it as a revenue-raising measure by the legislature [6] [7] [8]. The Department of Revenue’s notices make the technical change; advocacy outlets frame the vote as driven by fiscal concerns and legislative reviews of exemptions [1] [7].
6. Practical implications for buyers and sellers
For commercial transactions after Jan. 1, 2026, sellers must collect retail sales tax where applicable and pay B&O tax on gross income from bullion sales [1] [9]. For business-held precious metals used in commerce, local personal property tax rules still treat tangible personal property as taxable unless a specific exemption applies [3] [10]. How private individuals handle casual transfers — whether there will be reporting requirements, use tax liabilities, or enforcement against person-to-person sales — is not detailed in the cited DOR materials [1].
7. How to close the gap: what sources recommend
The Department of Revenue instructs taxpayers and industry participants to consult its notices and industry guides for compliance details; sellers are told to begin collecting and reporting taxes on bullion sales as described [1] [2]. Industry summaries urge buyers and dealers to verify specific product classifications (e.g., numismatic vs. bullion) because exemptions historically depended on those distinctions [11] [9].
8. Bottom line and unanswered questions
Bottom line: Washington treats sales of precious-metal bullion and monetized bullion as taxable tangible personal property for retail/B&O tax purposes starting Jan. 1, 2026 [1] [2]. Whether private, non-commercial transfers of bullion are practically treated as taxable retail sales or subject to personal property tax is not spelled out in the materials provided; available sources do not mention enforcement or reporting rules for casual person-to-person transfers [1] [3]. For definitive guidance about a specific private transfer, the Department of Revenue or a tax attorney should be consulted [1].
Limitations: this analysis uses only the cited DOR and secondary reporting materials; it does not substitute for legal advice and does not cover any subsequent rulemaking or local interpretations after the cited notices [1] [2].