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What is Initiative 2109, what will it do to capital gains taxes in WA?

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Published  November 5, 2024 11:06am PST
Election
FOX 13 Seattle

SEATTLE - There are four initiatives this year for residents to vote on before dropping their ballots off at 540 authorized ballot drop locations.

One is Initiative No. 2109. This ballot item will determine how Washington State taxes capital gains over $250,000 going forward.

What is Initiative No. 2109?

This initiative, if passed, will repeal the capital gains tax under the following parameters. If it fails, the tax will remain in place. 

Right now, revenue from the tax is directed toward state-funded education and childcare programs, a loss of revenue that opponents express concerns about as voters head to the polls.

  • The ballot measure specifically targets individuals with annual capital gains exceeding $250,000, removing the 7% excise tax that was established in 2021.
  • 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.
  • If voters approve Initiative 2109, the capital gains tax would be repealed, ending the collection of revenue from this source.

Supporters argue it will provide relief to individuals facing the tax. 

For more election news, FOX 13's live election coverage will keep you up to date.

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