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Committee hears split testimony on repeal of precious‑metals tax preferences
Summary
House Bill 19-65 would repeal sales and B&O exemptions for dealers and purchasers of precious metals and bullion. Advocates called it a longstanding loophole and recommended repeal; coin‑industry representatives warned the change would hurt small investors and questioned the fiscal estimate.
House Bill 19-65, which would repeal business-and-occupation and retail-sales tax exemptions for purchases of precious metal bullion and monetized bullion, received divided testimony on Feb. 25.
Staff told the committee the proposal would eliminate the B&O and retail sales exemptions for certain bullion transactions; the Department of Revenue’s draft fiscal estimate suggested state revenue increases of roughly $11.7 million in the first eight months of impacted collections and larger annual increases thereafter, depending on industry activity. The draft also estimated approximately 100 taxpayers would be affected.
John Burbank, a longtime critic of the exemption, urged repeal, calling the preference a “favor for dealers” introduced in 1985 and arguing the lack of reporting requirements can enable money-laundering and avoid taxation. He noted the fiscal note estimates a multi‑million-dollar revenue increase.
Opposing testimony from coin-industry representatives argued the exemption allows smaller investors to access precious metals as a store of value and questioned the size of the fiscal estimate. A trade witness compared Washington’s experience to other states where the fiscal impact was much smaller.
Why it matters: Repealing long-standing tax preferences can produce near-term revenue but produces disagreement about who bears the burden — dealers and investors or the broader tax base — and about enforcement and reporting consequences.
What happens next: The bill was taken in public testimony; staff will supply the official fiscal note and committee members may seek further clarification on the number of affected dealers and enforcement implications.
