Is sales tax or use tax owed on private sales of precious metals in Washington state?

1. What the law changed: bullion is now treated like tangible personal property

State legislation (ESSB 5794 / related statutory changes) removed the decades‑long exemption that treated qualifying precious metals differently, so beginning Jan. 1, 2026 sales of precious metal bullion and monetized bullion are no longer excluded from the statutory definitions of wholesale or retail sale and are taxable as tangible personal property under Washington law (Washington Department of Revenue special notice; Sales Tax Institute summary; news reporting) ^{[1] [4] [5]}.

2. Direct consequence for retail transactions: sellers must collect sales tax and face retail B&O tax

The Department of Revenue explicitly states gross income from sales of precious metal bullion and monetized bullion to end consumers is subject to the Retailing B&O classification and that sellers must collect retail sales tax on those transactions; those retail sales are therefore taxable under state and local sales tax rates starting Jan. 1, 2026 ^{[1] [2]}. Industry and local reporting echo that retail purchasers will see sales tax added and dealers will have increased B&O tax obligations ^{[3] [6]}.

3. Wholesale sales and reseller permits remain the statutory pathway to avoid retail sales tax

Washington’s guidance differentiates sales to resellers: gross income from sales to buyers who present a valid reseller permit are treated under the Wholesaling B&O classification and are not subject to retail sales tax, mirroring how other tangible goods are handled ^{[1] [2]}. Several dealer accounts and local outlets reported plans to pivot toward wholesaling or require reseller permits to limit retail‑tax exposure ^{[6] [7]}.

4. What the reporting says about the practical tax burden and market effects

Media and industry commentary predict material consumer price increases because of the added sales tax (state rate plus local levies), dealer pass‑through effects, and the retail B&O tax burden—estimates and anecdotes range up to roughly a 7–10% “friction” or even local reports of around 10% added cost in some places once local taxes are included ^{[8] [9] [6]}. Business owners have warned the change could push sales across state lines or change business models ^{[6] [10]}.

5. The gap: private, casual, person‑to‑person transfers and use tax are not conclusively addressed in these sources

The cited Department of Revenue pages and news pieces are authoritative about retail sales to end consumers and wholesale/reseller treatment, but they do not explicitly spell out the tax treatment of casual private sales between individuals (e.g., a one‑time private sale between two residents with no dealer involved), nor do these articles provide a plain‑language statement about whether use tax would be owed by a buyer in such a private transfer; therefore a definitive answer on that narrow scenario cannot be sourced from the provided materials ^{[1] [2] [5]}.

6. Bottom line and recommended next step given reporting limits

Based on Washington Department of Revenue guidance and consistent news reporting, retail sales of precious metals to consumers are subject to sales tax and B&O tax beginning Jan. 1, 2026, and sellers must collect sales tax unless the sale qualifies as a wholesale sale with a valid reseller permit ^{[1] [2] [3]}. Because the provided sources do not explicitly resolve whether private person‑to‑person transfers trigger use tax liability, anyone facing that precise situation should consult the Washington DOR or a tax professional for an official determination; the evidence here makes clear the state’s policy intent—to tax precious metals transactions like other tangible goods—while leaving some narrow transactional questions to formal DOR guidance or case‑specific advice ^{[1] [4]}.