summary
Introduced
01/27/2025
01/27/2025
In Committee
02/28/2025
02/28/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
AN ACT Relating to modifying the capital gains tax under chapter 2 82.87 RCW and related statutes by closing loopholes, replacing the 3 business and occupation tax credit with a capital gains tax credit, 4 clarifying ambiguities and making technical corrections in a manner 5 that is not estimated to affect state or local tax collections, 6 modifying the credit for taxes paid in other jurisdictions, treating 7 spouses and domestic partners more consistently, modifying and adding 8 definitions, creating a late payment penalty waiver, modifying the 9 publication schedule for inflation adjustments, modifying the 10 distributions of moneys to the following fiscal year instead of 11 calendar year, adding a nonclaim period, and adding a new requirement 12 for brokers and barter exchanges; amending RCW 82.04.4497, 82.87.020, 13 82.87.050, 82.87.070, 82.87.080, 82.87.100, 82.87.110, 82.87.120, 14 82.87.150, 82.32.060, and 82.32.090; reenacting and amending RCW 15 82.32.050; adding new sections to chapter 82.87 RCW; creating new 16 sections; providing an effective date; and providing an expiration 17 date. 18
AI Summary
This bill modifies Washington state's capital gains tax law with several key provisions: It adjusts the business and occupation tax credit for capital gains, clarifies definitions and reporting requirements, and makes technical corrections to the existing capital gains tax statute. Specifically, the bill creates a new nonrefundable credit for businesses starting in tax year 2025, expands definitions of terms like "intangible personal property" and "tangible personal property", and adds new requirements for brokers and barter exchanges to report capital gains transactions. The bill also modifies how spouses and domestic partners are treated for tax purposes, requiring their assets and activities to be combined when calculating tax liability. Additionally, it introduces new provisions for late payment penalties, extends the statute of limitations for tax assessments, and requires taxpayers to amend their returns if their federal income tax return changes in a way that impacts their Washington capital gains tax. The bill includes an expiration date of January 1, 2026, for some sections and contains a provision that the act will be null and void if specific funding is not provided by June 30, 2025.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
Referred to Rules 2 Review. (on 02/28/2025)
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