Rep. Sharon Wylie (D-Vancouver), breaks down the House Revenue Package:
1) Real Estate Excise Tax: Makes REET rate progressive to lower costs for homes under $250,000 and raises rate for homes over $1 million. About 97% of all property sales will either see a reduced rate or remain at current rate. Only 2.8% of sales would see an increased rate.
2) Capital Gains Tax: 7% tax on sale of corporate stocks, bonds, and other capital gains. EXEMPTS: retirement accounts; sale of livestock; agricultural lands; timber; and single-family homes.
98.5% of tax filers will never see this tax. Only 1.5% of Washington tax filers are affected.
3) Small Business Tax Relief: Reduces tax liability to ZERO for 72% of Washington businesses by increasing B&O tax rate by 20% on Washington’s highest grossing businesses. Creates a new small business deduction of $100,000 to businesses with revenue between $250,000 and $500,000.
4) Closing Costly Tax Breaks: Closes a handful of tax preferences that amount to $294 million over the next four years
5) Marketplace Fairness: Taxes most internet sales at the same rate as Washington’s local businesses.