Title
Approval of a Resolution Opposing Initiative No. 2109 Repealing Washington's Excise Tax Imposed on the Sale or Exchange of Certain Long-Term Capital Assets by Individuals Who Have Annual Capital Gains of Over $250,000
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Accept testimony from everyone who wishes to speak for or against the Initiative Measure No. 2109.
Motion if Council wishes to oppose the Initiative: Move to Adopt the Resolution Expressing City Council Opposition to Initiative No. 2109 Repealing Washington's Excise Tax Imposed on the Sale or Exchange of Certain Long-Term Capital Assets by Individuals Who Have Annual Capital Gains of Over $250,000
No action is needed if Council does not wish to adopt the Resolution.
Report
Issue:
Whether to oppose Initiative No. 2109 to Washington's voters that would repeal an excise tax imposed on the sale or exchange of certain long-term capital assets by individuals who have annual capital gains of over $250,000.
Staff Contact:
Debbie Sullivan, Assistant City Manager, CMO, 360.753.8499
Presenter(s):
Debbie Sullivan, Assistant City Manager
Background and Analysis:
The State of Washington imposes various taxes to raise revenue to fund state government. Those taxes include the retail sales tax, the business and occupation tax, the state property tax, and various other state taxes. In 2021, the Legislature passed a law creating a tax on the sale or exchange of certain long-term capital assets, commonly referred to as a "capital gains tax."
The capital gains tax applies to only some types of capital assets held for longer than a year, such as stocks, bonds, precious metals, or artwork. The tax does not apply to the sale of certain assets, including:
* real estate;
* retirement savings accounts or deferred compensation accounts;
* cattle, horses, or breeding livestock if more than 50 percent of the taxpayer's income is from farming or ranching; ...
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