Capital gains paid

From the 2024 DOR Tax Exemption Study

82.04.4497 - Capital gains tax paid Description Businesses that report B&O tax on the proceeds from a sale or exchange subject to the Washington capital gains tax may take a credit against the B&O tax. Purpose To avoid taxing the same sale or exchange under both the B&O and Washington capital gains taxes. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $14.400 $16.770 $19.720 $20.350 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this credit would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $20.350 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect January 1, 2025, and impacts collections in fiscal year 2027. - Impacts first occur in fiscal year 2027 because we assume businesses wait to apply the credit for tax year 2025 capital gains until 2026. - Growth rate for capital gains mirrors the long-term capital gains growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - The percentage of taxable capital gains also subject to the B&O tax is 6.14%. Data Sources - Department