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:
- Letter: ‘HSD needs to give a detailed line-item accounting of where the last levy went, and of how they plan to use this one’
Randall Schultz-Rathbun urges Hockinson School District to provide detailed, transparent accounting of past and proposed levy spending before asking voters for additional funds. - Letter: Interstate Bridge Replacement’s Park & Ride insanity
Bob Ortblad criticizes the Interstate Bridge Replacement Program’s proposed Park & Ride garages, arguing the costs are excessive and unlikely to receive federal funding. - Opinion: Vancouver councilors responsible for stoking irrational fears in the community
Clark County Today Editor Ken Vance sharply criticizes a Vancouver City Council declaration on immigration enforcement, arguing it fuels fear, undermines law enforcement, and lacks supporting evidence. - Opinion: Washington should stop shielding domestic abusers and sexual offenders from deportation
Vancouver attorney Angus Lee argues Washington law improperly shields convicted domestic abusers, sexual offenders, and drunk drivers from deportation and urges lawmakers to change it. - Opinion: Who is leaving Washington and why the politicians need to care
Mark Harmsworth argues Washington is losing higher-income taxpayers and business owners, warning that rising taxes and regulation threaten long-term economic stability.
