Washington State Repeals Precious Metals Tax Exemption: A Setback for Collectors and Dealers

The decision, finalized during the closing days of the 2025 legislative session, is expected to have wide-reaching impacts on collectors, investors, and coin dealers throughout the state and beyond.

The tax exemption repeal is part of Engrossed Substitute Senate Bill 5794 (ESSB 5794), a broader revenue package aimed at adopting recommendations from the 2024 tax preference review process, eliminating obsolete tax preferences, clarifying legislative intent, and addressing changes in constitutional law. The repeal is set to take effect on October 1, 2025.

The National Coin & Bullion Association (NCBA), which has championed the tax exemption since its inception, expressed deep disappointment at the decision. “Despite months of grassroots efforts, testimony, and dialogue with lawmakers, the legislature moved forward with a repeal that threatens not only the vibrancy of Washington’s numismatic and precious-metals market but also the economic competitiveness of the state,” said NCBA executive director David Crenshaw.

Washington had long stood among the growing list of states that recognize the unique value and investment stability of coins and precious metals by exempting them from sales taxes. The repeal positions the state as less favorable to coin and bullion buyers, who may now look to neighboring states with more supportive policies.

“The numismatic community should not be underestimated,” said Dan Duncan, a longtime Washington coin dealer and NCBA board member. “The sales-tax exemption for precious-metal bullion and monetized bullion supports local businesses, protects consumers, and promotes economic activity. This policy change ignores all of that.”

The repeal of the sales-tax exemption comes amid a broader effort by Washington state lawmakers to address a significant budget shortfall. According to nonpartisan auditors at the Joint Legislative Audit & Review Committee (JLARC), during this session the legislature repealed 20 tax exemptions where the public policy objective was not met, was unclear, or the exemption had become legally obsolete. NCBA notes that while fiscal concerns may have driven these decisions, the elimination of the exemption for retail sales of precious-metal bullion and monetized bullion disproportionately affects local dealers and investors, undermining an industry that brings jobs and economic activity to Washington.

NCBA plans to continue its advocacy work and is currently evaluating strategies for future legislative sessions. Collectors and dealers are encouraged to stay informed and engaged by visiting the NCBA website at ncbassoc.org.