Washington State Capital Gains Tax Reaches Governor’s Desk

Washington state would impose a 7% excise tax on capital gains that would raise about $500 million a year under a bill lawmakers sent to Gov. Jay Inslee on Sunday.

Inslee, a Democrat, supports the capital gains tax plan, which is pared down from the one he proposed in December and would apply to about 8,000 taxpayers instead of 58,000 as his proposal would have. The governor has until May 18 to sign or veto the measure, which passed with a final vote of 25-24 in the Senate.

If enacted, the tax would be the first of its kind in ...