Bill > HB1665

This bill seeks to repeal Washington state's capital gains income tax, which was previously established in 2021. The legislation aims to eliminate the tax by repealing multiple related Revised Code of Washington (RCW) sections that defined, implemented, and governed the capital gains tax. The bill's sponsors argue that the tax discourages economic growth, incentivizes people and businesses to leave the state, and disproportionately affects individuals and families who cannot easily mitigate its impact. The lawmakers contend that removing this tax will make Washington more economically competitive, create a fairer tax environment, and attract talent and investment. Specifically, the bill will repeal numerous statutes related to the tax, including definitions, exemptions, filing requirements, and administrative provisions. The proposed repeal is set to take effect on October 1, 2025, giving state agencies and taxpayers time to adjust to the change. By eliminating this tax, the legislature hopes to position Washington as a more attractive destination for individuals and businesses seeking a favorable economic climate.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1665&Year=2025&Initiative=false