WA decides: Initiative 2109 to repeal the state's capital gains tax

[Yo_Mama_Been_Loggin]

What would the initiative do?

Initiative 2109 would repeal Washington’s capital gains tax.

What is the capital gains tax?

The capital gains tax levies a 7% tax on the sale or exchange of long-term capital assets, such as stocks, bonds, and business interests. It doesn’t apply to real estate sales and only covers gains above $262,000 (up from $250,000 for the 2022 tax year, as the floor is tied to inflation). So if someone has $263,000 in taxable capital gains, they would only pay the 7% tax on the $1,000 above that $262,000 threshold.

Lawmakers approved the tax in 2021. It took effect after the state Supreme Court upheld it in a ruling last year. The first payments were due in April 2023.

Each year, up to $500 million from the tax is deposited into a state account for schools, early learning, and child care programs. Any tax collections beyond that amount go to an account that helps pay for school construction and renovations.

https://washingtonstatestandard.com/2024/05/06/wa-decides-initiative-2109-to-repeal-the-states-capital-gains-tax/

The tax also doesn't apply to retirement accounts. I'm annoyed that the article doesn't say this.