SPOKANE, Wash. — Washington residents will pay approximately 10% more for gold, silver and precious coins starting January 1 as a new state sales tax takes effect on precious metals purchases.
Previously exempt from state sales tax, precious metals will now be treated the same as other retail purchases like clothing and electronics.
Local coin store owners expressed concern about the impact on their businesses. Nick Crocker, owner of Coin Corner in Spokane Valley, said the timing is particularly challenging.
“The state’s going to make it really hard for me to really sell anything here in a couple of days,” Crocker said.
Crocker worries the new tax will drive customers to neighboring states without similar taxes.
“Hopefully I don’t have to move to Idaho to start a business over there. But it’s on the back of my mind,” Crocker said.
The new tax was part of broader legislation that removed tax exemptions from various items. State officials estimate the measure will generate $148 million in tax revenue.
Jake Graham, manager at American Coin and Vault, said many in the industry were caught off guard.
“We’re kind of a niche little industry that was kind of mostly left alone. I don’t think that they fully understood the ramifications of adding sales tax and a B&O tax to our business,” Graham said.
Graham warned the tax could force businesses to close if it remains in place long-term.
“If it lasts any more than a couple, you know, a year or two or something like that, there’s just no viable way for us to remain in business,” Graham said.
The Washington Coin and Bullion Association has pre-filed legislation to restore the tax exemption for precious metals.
“Hopefully we can get all of this fixed by the end of the year or by the end of this upcoming year,” Graham said.
COPYRIGHT 2025 BY KXLY. ALL RIGHTS RESERVED. THIS MATERIAL MAY NOT BE PUBLISHED, BROADCAST, REWRITTEN OR REDISTRIBUTED.
