Get ready, Washington state! A significant change is coming that could dramatically impact your wallet if you're into gold, silver, or other precious metals. Starting January 1st, 2026, a long-standing tax exemption on these items is being lifted, and the implications could be huge.
For 40 years, Washington residents have enjoyed a tax break when buying and selling precious metals. But that's about to change. Now, sales of precious metal coins and bullion—that's gold, silver, platinum, rhodium, and other refined metals—will be subject to a 10.3% sales tax, plus the Business and Occupation Tax.
But here's where it gets controversial...
Business owners like Craig Rhyne, the owner of Washington Gold Exchange, are already planning to relocate their entire businesses to states like Idaho. He believes the added tax burden will drive customers away, forcing them to seek deals across state lines.
"Think about it," Rhyne explained. "If a dealer charges \$4,500 for a one-ounce gold coin and the state wants \$450 more for sales tax, do you think a Washington resident would be so stupid as to buy locally? No! He’ll go out of state."
The state anticipates this change will generate up to $34 million in revenue every two years. However, not everyone is celebrating. Carolyn Beko of Redmond Rare Coins fears the change will decimate coin shows and events, ultimately reducing revenue for the state. Her business, already operating on tight margins, could suffer greatly.
"I have to wait for my precious metals to go up at least 11 or 12 percent to break even, just to break even, and that's unfair," Beko stated. "It's completely regressive."
Beko plans to keep her storefront open, but she's shifting her focus to selling to wholesalers with reseller permits to avoid the sales tax.
And this is the part most people miss...
The Washington Coin and Bullion Association has been formed to combat the tax, urging residents to contact their state lawmakers to repeal the new tax.
What do you think? Will this new tax benefit the state, or will it drive business elsewhere? Do you agree with the business owners who are concerned about the impact? Share your thoughts in the comments below!
