After today, gold and silver bullion will be subject to sales taxes in Washington State

Today is the final day people can buy gold and silver coins or bullion in Washington State without paying sales tax, as a new law takes effect Jan. 1 imposing roughly a 10% tax on precious metals purchases.

The change has ripple effects well beyond Washington’s borders. It is of interest in Alaska, where lawmakers are again weighing whether gold and silver should be treated as legal tender rather than taxable commodities.

For decades, Washington exempted precious metal bullion and monetized coins from sales and use taxes. That exemption, in place since 1985, was repealed by Washington Democrats under Engrossed Substitute Senate Bill 5794, signed into law in May. Beginning Jan. 1, gold, silver, platinum, and palladium bullion, along with legal-tender coins valued for their metal content, will be taxed like ordinary retail goods.

Depending on location, buyers will pay the state’s 6.5% sales tax plus local rates, pushing the total tax burden close to 10% in many communities. Sellers will also face business and occupation taxes on gross receipts.

Local coin dealers in Washington have warned the tax could sharply curtail sales, as buyers seek out dealers in neighboring states or online sellers. While Washington residents will technically still owe use tax on out-of-state purchases, enforcement is inconsistent, raising concerns that the policy will drive commerce elsewhere rather than increase state revenue.

For Alaska, the change next door comes as lawmakers debate a similar, but potentially opposite, approach.

Rep. Kevin McCabe of Big Lake has introduced House Bill 1, previously attempted as HB 3, which would recognize gold and silver as legal tender in Alaska.

The bill is currently before the House Finance Committee. If enacted, it would align Alaska with a growing number of states that have adopted so-called “sound money” or “constitutional tender” laws. It would be a different commodity than other taxable goods.

States including Utah, Texas, Oklahoma, Louisiana, Arkansas, Missouri, Wyoming, and Tennessee have passed measures affirming that gold and silver coins, typically US.-minted specie such as American Eagles, may be used as legal tender by mutual agreement. Texas expanded its framework in 2025 to allow electronic access to precious metals held in the state depository. Other states, including Florida and Alabama, have adopted related provisions.

As of late 2025, roughly a dozen states have some form of gold- and silver-recognition law, with more considering similar legislation. But Washington is going the other way.

The debate carries practical implications for Alaska, where there is no statewide sales tax but where municipalities may levy local taxes.

Under current law, any state or local sales tax would apply to gold and silver bullion as tangible personal property. Treating precious metals as money rather than merchandise would prevent them from being swept into future tax regimes.

Washington’s decision to tax precious metals starting Jan. 1 offers a real-time case study for Alaska lawmakers, and a reminder that policy choices in Juneau can determine whether Alaska follows its neighbor in taxing gold and silver, or joins states moving in the opposite direction by treating them as money.