Tuesday, June 6, 2017

Attention Washington Residents and Owners: State Considers 7% Capital Gains Tax, B&O Tax Increase, and Graduated Real Estate Taxes

In order to balance the state budget, the House Democrats & the Governor introduced HB 2186/SB 5929, new state capital gains tax of 7% and other tax increases to include:

1.    New State Capital Gains 7% Tax:
  • Sale of real-estate, commercial, industrial and residential rental (exempts your home, certain pensions, agricultural land and property)
  • Sales of stocks and bonds, gold and silver, other precious metals
  • IMPACTS: Sale of business, real-estate property and stocks and bonds, etc. It’s taxing your investment pension.
2.    B&O Tax Increases: 20% increases – 1.5% to 1.8%
  • 1.50: Services: property management, realtors, architect, accounting, window washers, legal, janitorial, and engineers, etc.
  • 0.471: Retailing: contractors, restaurants, clothing, Costco, Nordstrom, etc.
  • 0.484: Subcontractors, wholesale and manufacturing, etc.
  • 1.63: Private Nontribal Gambling: “Contest of chance” (card rooms)
3.    New: Graduated Real Estate Excise Taxes (Now 1.28%):
  • 0.75: Selling price is less than 250K
  • 1.28: Selling price is $250K to $1 million
  • 2.0: Selling price is $1 million to $5 million
  • 2.5: Selling price is $5 million and above
You're invited to contact your two house of representative members and one senator (call and follow-up with an email) to let them know your position on HB 2186 and SB 5929.

You can locate your lawmaker at the following “District Finder” link:
http://app.leg.wa.gov/districtfinder

You can find their contact information at the following: 
http://app.leg.wa.gov/Rosters/Members/Househttp://app.leg.wa.gov/Rosters/Members/House

Courtesy: Manufactured Housing Communities of Washington 1-(800) 345-5608