OLYMPIA, Wash. — The Washington Legislature has approved a new capital gains tax.
The measure would impose a 7% tax on the sale of stocks, bonds, and other high-end assets in excess of $250,000 for both individuals and couples.
Retirement accounts, real estate, farms and forestry would be exempt.
Republican Sen. Brad Hawkins says language in the bill makes it unlikely voters will be able to weigh in on the measure via referendum.
He predicts that if the state Supreme Court upholds it, it will be adjusted over time with the thresholds reduced and exemptions eliminated to the point where it becomes a tax on everyone.
House Speaker Laurie Jinkins praised the work of work of legislators in a virtual session that produced this and many other bills passed on the strength of the democratic majority, commenting that they worked together really strongly, engaging the public to find the right solution.
The capital gains tax bill now now heads to Gov. Jay Inslee for his signature and then is certain to face a legal challenge from opponents who say it’s a tax on income that violates the state constitution.