Chris Corry points out concerns including taxes paid to other jurisdictions, which highlights the difficulty in making an income tax an excise tax that reaches across state lines
Chris Corry
Washington Policy Center
The Department of Revenue held its first public meeting (as required by law) to discuss proposed changes to the capital gains income tax WACs. This change would add a new section, WAC 458-20-301 (rule 301) regarding definitions, deductions, exemptions, and allocations of gains and losses. The Center for Government Reform previously provided an initial review.
The meeting was called to order and facilitated by Michael Hwang, Tax Policy Specialist, and drafter of the proposed rules. The meeting was attended by a variety of parties including local governments, business associations, tax professionals, and the public.
A topic of concern highlighted by the Washington Society of CPAs is capital loss carryovers (something we flagged) and how they impact federal net long-term capital gain in the year per legislative intent in RCW 82.87.040.
Another area of concern regarded taxes paid to other jurisdictions. There is confusion on how to apply this exclusion with how other states apply tax deductions. This issue highlights the difficulty in making an income tax an excise tax that reaches across state lines.
As noted during the meeting, the current rule draft is provided for discussion purposes only. Comments on the initial draft can still be made via email here. The Department will review comments made during this meeting and those emailed to potentially amend Rule 301. They will file the adjusted rule and will hold another public hearing. They noted in the meeting they are trying to have rules completed by October.
You can watch the public hearing here. There was some additional news coverage of the meeting.
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: ‘A more responsible approach must be sought’
Ken Vance argues a $10 billion funding gap makes the phased I-5 Bridge approach fiscally reckless, not responsible. - POLL: Do patriotic displays like Yacolt’s road striping help strengthen community spirit?
A Yacolt road striping project tied to America’s 250th anniversary is dividing opinion in Clark County. - Opinion: The challenges of getting the Brockmann mental health facility open
A $42 million, 48-bed mental health campus near WSU Vancouver was completed in 2025 but never opened due to lack of state funding. - Opinion: Washington’s business exodus accelerates due to high taxes, regulations driving companies away
Washington’s business relocation rate has nearly tripled since winter 2025, per an AWB survey. - Letter: Food service, public health, and the Men’s Share House question
Peter Bracchi asks why Share House’s 96,987 annual meals face less public-health scrutiny than a waterfront restaurant.
