Rep. Jeremie Dufault proposes legislation to repeal capital gains income tax

House Bill 1912 is a companion to Senate Bill 5696

Rep. Jeremie Dufault, R-Selah, has introduced legislation that would repeal the state's new controversial capital gains income tax that went into effect on Jan. 1, 2022. House Bill 1912 has been referred to the House Finance Committee.

“Washingtonians have told us several times over the years they do not want any form of a state income tax. We need to listen,” said Dufault, assistant ranking member on the House Finance Committee. “If we don't repeal this now, every working Washingtonian will eventually pay a state income tax. New tax schemes like this one only grow in scope and reach once established.”  

The capital gains income tax was established through the passage of Senate Bill 5096 in the 2021 legislative session. The legislation imposed a 7% tax on the amount of capital gains reported on an individual's federal income tax return. The law is facing a legal challenge from plaintiffs who claim it is a graduated tax on income.

“Our state has more than enough money to pay for its priorities and programs. State tax collections have remained strong through the pandemic,” said Dufault. “We do not need to ask for more from any taxpayer.”

State lawmakers entered the year with a four-year operating budget surplus projected to be $8.8 billion – in addition to $2.2 billion in reserves and $1.2 billion in unspent federal stimulus funds.

House Bill 1912 is a companion to Senate Bill 5696, which has been referred to the Senate Ways and Means Committee.

The 2022 legislative session began on Jan. 10 and is scheduled to run 60 days. 

Learn more:

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Washington State House Republican Communications
houserepublicans.wa.gov