KIRKLAND, Wash. — Customers looking to buy precious metal coins in Washington are increasingly taking their business out of state after a tax exemption ended at the start of this year, according to a coin shop owner who says the change is hurting sales.
Carolyn Beko, co-owner of Redmond Rare Coins, said foot traffic has dropped and shelves are “mostly-bare” because customers are avoiding the added cost.
“They’re either going to Oregon or Idaho or somewhere else,” Beko said.
Washington state lifted an exemption on a precious metals tax that is more than 10%, affecting buyers and sellers of precious metal coins and smelted or refined gold, silver, platinum, and rhodium, among other metals. Beko said the store has had to pass the extra cost on to customers, and many are not willing to pay the difference.
Beko said the business, which has operated for 30 years, including 20 years in Kirkland, can stay afloat by selling to wholesalers or by selling to customers without the tax at coin shows out of state.
The tax change was part of a much larger tax preference bill that drew vocal support from various groups last year.
Beko, who is president of the State Coin and Bullion Association, said she is working to get the law repealed in the next legislative session.
“I understand why the government did it, because they want to balance the budget. They need to balance the budget, but this wasn’t the way to do it,” she said.
KOMO reached out to the 11 bill sponsors for reaction to the reported impacts on businesses like Beko’s, but did not receive a response by news time.
Lawmakers projected the change could generate up to $34 million in revenue every two years. KOMO said it is working to find out from the Department of Revenue how much has been generated so far.
