Fact check: Is washington state trying to tax gold

1. What the legislature changed — A reversal that makes bullion taxable and why it matters

Washington’s legislature repealed the statutory sales- and use-tax exemption for purchases of precious-metal bullion and coins, removing the prior carve-out that treated bullion sales differently from typical retail transactions; official Washington notices and state guidance state those sales are now within the definitions of wholesale and retail sales for tax purposes and thus subject to the state’s business-and-occupation and retail sales taxes effective in the 2026 tax year ^{[1] [3]}. This change alters the tax treatment of bullion transactions and has direct implications for coin dealers, investors, and brick-and-mortar retailers who previously relied on the exemption to avoid retail sales tax on bullion sales ^{[2] [4]}.

2. Conflicting effective dates and numerical claims — Sorting discrepancy from reporting

Reporting varies on the precise effective date and tax rate: several news summaries and industry notices place the repeal’s effective date at January 1, 2026, while an industry association bulletin published earlier claimed an October 1, 2025 effective date; another news article described a 10 percent sales tax figure attributed to state action ^{[2] [4]}. These differences matter for compliance and inventory decisions, and they reflect either staggered administrative rollouts, differing interpretations of legislative language, or reporting errors; the state’s September 2025 publication is the most authoritative on timing and tax mechanism ^[1].

3. What the official guidance actually says — Tax mechanisms, not a single flat tax

State guidance presented in late September 2025 indicates that bullion and monetized bullion sales will be subject to Washington’s existing retail sales tax and business-and-occupation tax, rather than introducing a new, standalone “bullion tax” at a single flat percentage; the impact on final customer pricing will therefore vary by jurisdictional sales-tax rates and B&O tax incidence ^{[1] [3]}. Characterizing the change as a simple 10 percent sales tax is an oversimplification: local sales-tax rates and the structure of B&O taxation mean the effective tax burden differs by seller location, transaction method, and whether dealers absorb or pass through taxes to buyers ^{[1] [2]}.

4. Industry reactions and economic incentives — Who stands to gain or lose

Coin and bullion dealers, collectors, and in-state buyers face immediate cost increases or compliance burdens; trade groups warned the repeal could shift purchase activity to neighboring states or online sellers that operate where exemptions remain, creating cross-border sales migration and compliance headaches for small local businesses ^{[4] [5]}. Conversely, the state anticipates increased tax receipts and narrowed loopholes that previously allowed monetized-metal transactions to escape standard tax treatment; the fiscal motive is explicit in legislative and administrative rationales that aim to broaden the tax base ^{[1] [2]}.

5. How this fits national trends — Divergence, not unanimity

While several states have moved in recent years to expand exemptions for coin and bullion purchases to stimulate collector and investment markets, Washington’s repeal represents a countervailing action that narrows exemptions and raises taxable activity within state borders ^{[6] [5]}. Observers noting a nationwide movement toward exemptions should account for state-by-state variance: Florida and Connecticut examples show the opposite policy direction, underscoring that this Washington action is part of a patchwork of disparate state approaches rather than a uniform national trend ^[6].

6. What buyers and dealers should do next — Compliance and mitigation steps

Dealers, investors, and consumers should consult the Washington Department of Revenue’s official publication from September 2025 for the authoritative definitions, effective dates, and registration requirements, and should review point-of-sale systems to ensure sales tax collection and B&O reporting are implemented properly; sellers with existing inventories or pre-sale contracts must determine whether transactions are grandfathered or taxable under the new rules ^{[1] [3]}. Practical steps include updating invoices, notifying customers of tax changes, and seeking tax-professional advice to determine whether any transaction structuring or exemption claims remain viable under revised statute language ^{[4] [1]}.

7. Final balance — Reliable facts and remaining uncertainties

Multiple independent and official sources converge on the core fact that Washington repealed its bullion sales-tax exemption and that bullion sales will be subject to state taxes in the 2026 tax year, but reporting discrepancies about effective dates and simplified tax-rate assertions persist across outlets; the state’s September 2025 guidance is the most authoritative and should be treated as primary for compliance decisions ^{[1] [2] [3]}. Anyone affected should rely on the official notice for timing and tax mechanism details while recognizing that industry bulletins and news stories may emphasize particular impacts or percentages for advocacy or narrative effect ^{[4] [5]}.