WA voters reject Initiative 2109, hanging on to capital gains tax
Voters in Washington have voted down Initiative 2109 in the November 2024 election. This means the 7% excise tax will remain on the books.
The Associated Press called the race at 8:43 p.m. on election night.
Those impacted by the tax include individuals making more than $250,000 in capital gains from the sale or exchange of certain long-term assets.
Opponents expressed concerns about the bid to repeal the tax. They worried about the potential impact on state-funded education and childcare programs that have been the beneficiaries of the excise tax implementation.
Keep reading to learn more about this initiative and what it means for Washingtonians, now that it’s been rejected.
What is Initiative 2109 about?
The ballot measure specifically aimed to remove the 7% excise tax that was established in 2021 for individuals with annual capital gains exceeding $250,000.
What does Washington’s capital gains tax cover?
The capital gains tax covers assets like stocks, bonds and other long-term investments, but excludes real estate, retirement accounts, livestock and other specified assets. It provides a $250,000 deduction for taxpayers, meaning the tax only applies to gains above this threshold.
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