Seattle City Council narrowly rejects capital gains tax proposal

A split 4-4 Seattle City Council committee vote on Tuesday is likely the end — for now — of the local tax on certain capital gains over $262,000.

The full council will vote again on the tax on Thursday but it's unlikely to pass given the select budget committee vote. Technically, the tax advances to Thursday's meeting without a "pass" recommendation.

The proposal by Councilmember Cathy Moore would have imposed a 2% capital gains excise tax on nonretirement financial gains over $262,000 to fund rental assistance, down payment help for low- and moderate-income home ownership and food assistance for food-insecure households. Gains from the sale of real estate and the sale of qualified family-owned small businesses were excluded.

The tax would have been collected on top of the state's 7% capital gains tax. Washington voters on Nov. 5 overwhelmingly rejected a ballot measure to rescind the tax.

https://www.bizjournals.com/seattle/news/2024/11/19/seattle-council-kills-capital-tax-proposal.html