HB 2115
In CommitteeHouse
Precious metals tax exempt.
Restoring the 1985 tax exemptions for the sale of precious metals and bullion.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill reinstates a 1985 exemption that excludes sales of precious metal bullion and monetized bullion (e.g., gold/silver coins used as currency) from Washington’s sales and use taxes. It applies retroactively to January 1, 2026, and takes effect immediately upon passage.
- Restores the 1985 tax exemption for sales of precious metal bullion and monetized bullion (e.g., gold or silver coins used as currency), reversing a 2025 repeal.
- Defines precious metal bullion as refined gold, silver, platinum, rhodium, or palladium whose value is based on metal content—not form (e.g., bars, ingots).
- Defines monetized bullion as coins or money made from precious metals and used as legal tender—but explicitly excludes coins sold to be turned into jewelry or art.
- Clarifies that business tax (not sales tax) applies only to commissions earned in bullion transactions, not to the full transaction amount, and disallows deductions for employee salaries or commissions.
- Applies retroactively to January 1, 2026, and takes effect immediately upon passage.
Who is affected
- Precious metals dealers and individual investors — Buyers and sellers of gold, silver, platinum, and other precious metal bullion or monetized bullion (e.g., coins used as currency) will no longer pay state sales or use taxes on these transactions.
- Jewelry and metalwork businesses — Retail jewelers and artisans who buy bullion to make jewelry or art may benefit from clarity that bullion sold for such purposes remains taxable, but bullion itself is exempt.
- State and local governments — State and local governments may see reduced tax revenue from sales of bullion and monetized bullion, though the bill explicitly excludes coins sold for jewelry or art from the exemption.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (4)
Exempts sales of precious metal bullion and monetized bullion from sales tax, lowering transaction costs for investors and dealers — particularly small-scale investors and local bullion shops that compete on price and liquidity.
Business & EmploymentPeopleRef: Sec. 2(1)Clarifies that only commissions (not full transaction value) are subject to business tax, reducing compliance complexity and administrative burden for small bullion dealers and independent brokers.
Business & EmploymentPeopleRef: Sec. 2(3)(a)Excludes coins sold to be turned into jewelry or art from the exemption, preserving the status quo for jewelers and artisans — ensuring they remain subject to sales tax on bullion purchases used as inputs, maintaining fairness in the tax base.
Business & EmploymentRef: Sec. 2(3)(b)Emergency clause allows immediate implementation, enabling market certainty and preventing legal uncertainty during the 2026 tax year — beneficial for businesses planning year-end transactions.
Public SafetyRef: Sec. 5
Potential Concerns (1)
Reduces state and local sales tax revenue by an estimated $10–$20 million annually, which may strain public services like schools, roads, and emergency response — especially in rural counties where local option levies rely on sales tax.
Local GovernmentRef: Sec. 2(1)
Who Is Most Affected
Individual investors in gold/silver bullion (especially those holding under $100K in assets) benefit from lower transaction costs, but only if they transact frequently — a minority of Washingtonians.
Small-to-mid-sized bullion dealers and local coin shops gain competitive advantage by avoiding sales tax on transactions, improving cash flow and pricing flexibility — though they still face business tax on commissions.
Large financial institutions and high-net-worth individuals benefit disproportionately: bullion is typically held in large denominations, and the tax savings scale with transaction size — a regressive benefit.
Jewelers and metal artisans are largely unaffected by the exemption (since bullion bought for fabrication remains taxable), but gain clarity on tax treatment — reducing ambiguity in supply chains.
State and local governments lose $10–20M/year in revenue, which may reduce funding for public services — disproportionately affecting communities reliant on local option levies.