Legislative Auditor's conclusion:
Together, businesses and buyers saved $28.4 million in fiscal year 2023, an increase of 457% since 2017. The preferences' effect on the competitiveness of Washington businesses is unclear because it depends on the circumstances of the sale.
Key points:
-The 1985 Legislature enacted two preferences for sales of precious metals and monetized bullion. One is a sales and use tax exemption and the other gives special B&O tax treatment.
-As JLARC concluded in 2012, precious metals and monetized bullion businesses continue to pay B&O tax on a smaller portion of their income than sellers of other types of investments.
-Beneficiary savings have increased. The amount reported by out-of-state businesses has grown to nearly 40%.
-The sales and use tax exemption treats sales of precious metals and monetized bullion like other investments. The preference's impact on the competitiveness of Washington businesses is unclear because it depends on the circumstances of the sale.
-The Legislative Auditor recommends adding a public policy objective and clarifying the tax treatment the Legislature hopes to achieve with these preferences.
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JLARC is a legislative committee in Washington State. We work to improve state government. We have an equal number of members from the House and Senate, evenly split between the parties.
Nonpartisan staff do research, complete audits, and present findings to the committee. The Legislative Auditor oversees the work.
Learn more about JLARC here: leg.wa.gov/jla...
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9 июл 2024
