Find Out Why Washington State Investors Can Enjoy A Tax Loophole For Their Gold Eagle Coins Directly At Gold-Eagle.org

4 February 2010 – In Washington State, the Democratic majority has been looking for additional sources of revenue in an attempt to balance the budget. Closing loopholes in the tax code appears to be one of those efforts; however, for beneficiaries of the tax exemption on bullion, it looks like silver and gold American Eagles can breathe a little easier as plans to close the loophole appear to be waning.

While campaigning for governor in 2004, Chris Gregoire talked about closing loopholes in order to raise taxes. One of the examples that she focused on was the sales tax exemption on gold and silver bullion and the business tax on its dealers. Gregoire claimed that this provision allowed dealers a $150,000 exemption and the government now estimates it loses over $2 million in revenue

After much debate, the consensus opinion is that repealing the sales tax exemption would likely send the business to Idaho or Oregon, two states that do not charge sales tax for these items, making it a law that generates little revenue and likely costs voters their jobs.

This is a victory for investors in Washington who have decided to add Gold Eagles and other bullion to their portfolios. Such a law would create an unfair disadvantage for gold, one that does not exist for stocks and other commodities.

For now, the citizens of Washington can continue buying Gold Eagles, Silver Eagles, American Buffalos and other bullion without government interference. Thanks to common sense, the government is not biting into the profits made on these coins. Of course, it is always advisable to consult a tax adviser prior to any Gold Eagle buys or sells to avoid any hot water in the future. 

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Joshua Harris

Senior Staff Writer - Gold-Eagle.org