SB 5096 would impose a 9% income tax
Last updated 1/21/2021 at 9:09am
There is no question SB 5096 would impose an income tax in Washington state. The Federal Internal Revenue Service (IRS) unequivocally says a capital gains tax is an income tax.
If enacted, SB 5096 would be the first stand-alone income tax on capital gains in the country.
No other state without a personal income tax has a capital gains tax, and those states that do tax capital gains income collect the tax through their state income tax code.
Officials in every state revenue department across the country agree that income taxes on capital gains are extremely volatile and unpredictable.