There could be some changes to how you are taxed on you property assets in the near future. According to a recently published This Week In Olympia bulletin some of the proposed changes include a new 9% capital gains tax as well as an amendment to the our states Real Estate Excise Tax. Below are the proposed changes to the tax code.
“To counter a projected deficit—and provide additional resources for additional programs—Inslee included three revenue proposals in his budget, which are projected to raise $3.7 billion:• Implement a new nine percent Capital Gains Tax on the sale of stocks, bonds,and other assets. When State Superintendent Reykdal released his budget proposal earlier this year, he also called for a new Capital Gains Tax. Reykdal proposed that half of the resultant revenues be used to fund K–12 education programs and the second half be used to drive down the State Property Tax rate, so his levy increase plan would be more palatable. Under Inslee’s proposal, a projected increase of$975.0 million in Fiscal Year 2021 (increasing to $2.141 billion in 2021–23) would simply be used to bolster the bottom-line of the budget.
• Increase the Business & Occupation (B&O) Tax on services and other activities from the current 1.5 percent to 2.5 percent, projected to raise $2.6 billion in the next biennium.
• Amend the state’s Real Estate Excise Tax (REET) from a flat rate to a more progressive graduated rate. Sales of lower-valued properties under $250,000 would be taxed at 0.75 percent and the rate would increase to 2 percent for properties valued over $1 million and to 2.5 percent for sales over $5 million. Sales of property between $250,000 and $1 million would continue to be taxed at the current rateof 1.28 percent. This proposal, which would lower taxes for many citizens, while increasing taxes for others, is expected to generate approximately $400 million in the next biennium. This additional revenue source would be used specifically to help the state pay for removal of fish passage barriers (culverts), as required by aU.S. Supreme Court order.”-TWIO (12/17/18)
Click here if you would like to read more in depth about any of the proposed changes.