Public engagement and comment will be critical as the department rolls out and further implements the Washington State Capital Gains Excise Tax on Income
Rep. Chris Corry
Washington Policy Center
The Washington State Department of Revenue released its preliminary rule draft for a new section of the Excise Tax WACs for the upcoming public hearing on July 12th, 2023 at 10:00 am.
The proposed WAC-20-301 provides definitions, deductions, exemptions, and allocation of gains and losses for those filing with the state.
An initial review with the Tax Foundation found that most of the rules and definitions align with other state rules for capital gains income taxes, not excise taxes. Washington State’s capital gains tax is written as an excise tax but definitions and rules seem to treat it as an income tax.
The definitions around domicile and residency are of concern as well as how the state is capturing an “excise tax” on transactions that happen outside the state. The new WACs provide extensive examples of taxable scenarios. The draft does specifically ask for “Feedback requested concerning whether the term “federal net long-term capital gain” contemplates further adjustment under statute and existing case law.” (page 5 of draft rules) Of additional note is the exclusion of losses carried forward or backward for tax filing purposes.
Public engagement and comment will be critical as the department rolls out and further implements the Washington State Capital Gains Excise Tax on Income. You can find the pre proposal statement of inquiry here. Emails on rulemaking can be sent here. The meeting link can be accessed here.
Rep. Chris Corry is the director of the Center for Government Reform at the Washington Policy Center. He is also a member of the Washington State House of Representatives.
Also read:
- Opinion: New audit offers another reason lawmakers should leave the state’s paid-leave program behindElizabeth New (Hovde) critiques Washington’s Paid Family and Medical Leave program, highlighting audit findings of double-dipping and program inefficiencies.
- Opinion: WA turns redder, despite faulty media reports that said otherwiseWAGOP highlights gains in Washington’s November 2024 election, challenging claims the state turned “bluer.”
- Opinion: New FCC Chairman indicates shakeup for internet policyFCC Chairman Brendan Carr signals major shifts in internet policy, from net neutrality to rural broadband and tech regulations.
- Opinion: John Ley pens letter to Transportation Secretary Pete ButtigiegJohn Ley challenges the I-5 Bridge Replacement project, urging Secretary Pete Buttigieg to reconsider federal funding.
- Opinion: Washington’s shift blue is a mirageNancy Churchill explains why Washington’s perceived shift blue after 2024 is a mirage.