Fact Sheet: ESSB 5794 — Section 105, Act 1 (Repeal of Precious Metals Exemption)
What the Bill Does
- Repeals Washington’s 40-year exemption for investment-grade precious metals.
- Adds a new B&O tax starting January 1, 2026.
- Combined impact: 10% tax on coins and bullion.
Why It’s Harmful
- Dealers operate on 2–3% margins — a 10% tax wipes out business.
- Consumers will shift to Oregon and Idaho (both exempt), or unregulated markets.
- Retirees and middle-income families lose a key inflation hedge.
- History shows failure: Louisiana and Ohio reinstated exemptions after revenues fell.
National Trend
- 45 states exempt bullion and coins from sales tax.
- Bipartisan support nationwide.
- Florida, Kentucky, Idaho, Utah, Texas, Nebraska, Alabama all expanded exemptions in 2024–2025.
Recommendations
1. Reject repeal of the exemption under ESSB 5794, Section 105.
2. Clarify statutory definitions in line with JLARC’s own suggestion.
3. Protect small Washington businesses and consumers by maintaining the exemption.
For Further Information
Contact Carolyn Beko, Washington Coin & Bullion Association President
CB@Redmondrarecoins.com
(425) 823-2646 (COIN)
www.washingtoncoinandbullionassoc.org