State House Passes 7% Tax for Capital Gains Income

The state House of Representatives passed the potential capital gains income tax after adding the emergency provision that would put the tax to a referendum and the amended bill heads to the Senate for approval. When the bill initially passed through the Senate, the emergency clause was removed from the bill and barely passed the Senate by one vote.

"I presume with them adding that back in, they're hoping that one of the Senate Democrats flip their vote from a no to a yes," said Senator Brad Hawkins.

The legislative session is coming to a close on Sunday and the bill must gain Senate approval before heading to Governor Inslee's desk. Both chambers have to both pass the bill in its same exact form word for word in order to make it to the governor's desk for a signature.

The bill passed 52 to 46 in the House, with all Republicans and five Democrats voting no.