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Are private sales of gold between individuals subject to Washington state sales tax?
Executive Summary
Private sales of gold between individuals in Washington state were generally treated as exempt from state retail sales tax under earlier guidance and WAC 458-20-248 frameworks, but a statutory change enacted in 2025 will make sales of precious metal bullion — including many forms of gold bullion and monetized bullion — subject to Washington retail sales tax and B&O tax effective January 1, 2026. Current pre-2026 practice and advisory materials characterize many private bullion transfers as non-taxable, while the 2025 legislative change and Department of Revenue notices indicate that most transactions involving bullion sold to end consumers will become taxable unless a specific reseller exemption applies [1] [2] [3].
1. What people are claiming and why this matters — a sharp contrast in guidance
Two competing narratives appear in the materials: one asserts that qualifying precious metal bullion and monetized bullion have been exempt from Washington sales tax, often cited in how-to-buy guidance and older agency interpretations; the other reflects the 2025 legislative update making such bullion sales taxable beginning January 1, 2026. The claim that private person-to-person gold sales are currently non-taxable rests on regulatory interpretation and historical practice [1] [4]. Contrastingly, a Washington Department of Revenue notice and legislative summaries dated September 24, 2025, and related analyses state the new tax treatment will capture sales to end consumers — which would include most private sales unless the buyer qualifies as a reseller — thereby changing the tax landscape for sellers and buyers of gold [3].
2. The legal pivot: 2025 legislation and the Department of Revenue notice
Analysis of the recent rulemaking and legislative action shows that Engrossed Senate Substitute Bill 5794 [5] and Department of Revenue notices announce that beginning January 1, 2026, sales of precious metal bullion and monetized bullion will be subject to retail sales tax and B&O tax. The Department’s September 24, 2025 notice explicitly frames the change as applying to sales to end consumers and resellers, signaling that the tax will cover commercial sales of bullion and likely private sales absent a reseller permit for the buyer [3]. Prior guidance distinguishing bullion from numismatic or collectible coins retains force for classifying what constitutes “precious metal bullion,” but the new law narrows the prior exemption for many transactions [1] [2].
3. Where ambiguity remains — private person-to-person transfers and edge cases
Despite the statutory change, sources note uncertainty about specific edge cases: whether raw forms of gold not meeting the statutory “bullion” definition, transfers between individuals where no sale for retail consumption occurs, or bona fide resales with valid reseller permits will be taxed. Pre-2026 guidance consistently exempted bullion meeting specified criteria, while the post-2025 notices and summaries focus on sales to end consumers and resellers, leaving interpretive questions about private sales for the Department to clarify through rulemaking or FAQs [1] [3] [4]. Analysts also flag that sales of manufactured items like jewelry, and commissions tied to bullion sales, have been and remain taxable under existing practice [2].
4. Practical consequences for buyers and sellers — paperwork, permits, and tax exposure
Practically, sellers who transact gold privately should anticipate tax collection obligations starting January 1, 2026, unless the buyer provides a valid reseller permit or the metal falls outside the statutory definition. The Department’s notice and legislative summaries emphasize the business-and-occupation and retail sales tax consequences for bullion sales, which implies recordkeeping and potential registration obligations for repeat sellers and for buyers claiming reseller status [3] [2]. Prior to 2026, many private sales escaped retail sales tax, which made private transfers administratively simpler; this change is likely to increase compliance burdens and could prompt more buyers and sellers to seek formal reseller documentation or consult tax professionals [2] [3].
5. Bottom line and what to watch next — agency guidance and implementation details
The bottom line is that as of the date of these sources, private sales of gold between individuals were commonly treated as exempt, but the 2025 law and Department of Revenue notice will make most bullion sales taxable beginning January 1, 2026. Sellers and buyers should monitor forthcoming Department of Revenue rulemaking or FAQs clarifying definitions, reseller documentation requirements, and any carve-outs, and consider consulting tax counsel for transactions around the transition. The change stems from explicit legislative action in 2025 and Department communications dated September 24, 2025, so implementation guidance issued before the January 1, 2026 effective date will be decisive for how private person-to-person sales are handled in practice [2] [3].