Washington Law Smooths Wrinkles in Capital Gains Tax Rules

Washington state made multiple tweaks to its capital gains tax based on three years of experience with the levy under a bill signed on Tuesday by Gov. Bob Ferguson (D).

The Washington Department of Revenue requested the bill (S.B. 5314) from Sen. Derek Stanford (D) with technical fixes and administrative changes to the tax that was enacted in 2022, the department’s legislative and external affairs staff member Steve Ewing told lawmakers during hearings on the bill before it passed.

“These changes will help the agency collect the tax more efficiently while streamlining the reporting ...