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

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.