Bill > SB5314

This bill modifies Washington state's capital gains tax by making several technical and substantive changes. The bill updates definitions, clarifies reporting requirements, and creates new provisions for taxing long-term capital gains. Specifically, it introduces a new nonrefundable credit to avoid double taxation between the business and occupation tax and the capital gains tax starting in tax year 2025. The bill also adds new reporting requirements for brokers and barter exchanges, requiring them to electronically submit Form 1099-B to the state department for long-term capital gains transactions allocated to Washington. Additionally, the bill makes changes to how spouses and domestic partners are treated for tax purposes, ensuring that their assets and activities are combined when calculating tax liabilities. The bill includes provisions for adjusting applicable tax amounts annually based on the consumer price index, creates penalties for non-compliance, and establishes rules for amending returns if federal tax returns are changed. The bill is designed to close potential loopholes, improve tax administration, and provide more clarity in the implementation of Washington's capital gains tax.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5314&Year=2025&Initiative=false