Get ready for a financial shake-up in Washington State—one that could send ripples through the precious metals market and beyond. Starting January 1, 2026, a decades-old tax exemption on precious metals like gold and silver will be lifted, potentially sending prices soaring and driving businesses out of state. But here's where it gets controversial: while lawmakers see this as a $34 million revenue windfall every two years, some businesses argue it’s a recipe for economic disaster.
For 40 years, buyers and sellers of precious metals in Washington have enjoyed a tax exemption on items like gold coins, silver bullion, and refined metals such as platinum and rhodium. But that’s all changing. Beginning in the New Year, these transactions will be subject to a combined 10.3% tax, including the state’s Business and Occupation Tax. This shift has many in the industry sounding the alarm.
Craig Rhyne, owner of Washington Gold Exchange, is already planning his exit. “I’m looking to move my entire business to Idaho,” he told KOMO News. Rhyne believes the tax hike will push customers to neighboring states like Oregon and Idaho, where they can avoid the hefty surcharge. “If a one-ounce gold coin costs $4,500 and the state tacks on an extra $450 in taxes, why would anyone buy locally?” he asked. “It’s just not realistic.”
And this is the part most people miss: it’s not just big dealers who are affected. Small businesses, like Carolyn Beko’s Redmond Rare Coins, are bracing for the worst. Beko, who operates on razor-thin margins, says the tax will force her to wait for precious metals prices to rise by 11-12% just to break even. “It’s completely regressive,” she stated. “It’s unfair to businesses and consumers alike.”
Beko’s storefront is locked into a long-term lease, so she’s pivoting to sell primarily to wholesalers with reseller permits to avoid the tax. But she’s not taking this lying down. As part of the newly formed Washington Coin and Bullion Association, she’s urging residents to email their lawmakers and demand a repeal of the tax. The group argues that the tax won’t just hurt businesses—it could also shrink the state’s revenue in the long run by driving away coin shows and events.
Here’s the bigger question: Is this tax a fair way to generate revenue, or is it a shortsighted move that will backfire on Washington’s economy? Lawmakers are betting on the former, but many in the industry are convinced it’s the latter. What do you think? Will this tax hike achieve its goals, or will it push businesses and buyers out of state? Let us know in the comments—this debate is far from over.
