Sponsored by Senator Murray, this bill implements a 5% capital gains tax to provide funding for educational programs and the services that make those programs work. The tax would apply to capital gains of more than $10,000 for individuals or $20,000 for joint filers. The bill provides several exemptions, including exemptions for the sale of primary residences and for retirement accounts. The resultant revenue will go into the Education Legacy Trust Account. Of the revenue created, $55 million will go to the Department of Early Learning to provide additional early childhood education and assistance program slots to all eligible three- and four-year olds. $220 million will go toward reducing K-3 class sizes to an average of 17 per class. $6 million will go to enhancing the Readiness to Learn program. $89.3 million will go toward phasing in all-day kindergarten. $175 million will go to institutions of higher education. The bill also extends the existing tax on beer and states that the revenue from this tax must also go to the Education Legacy Trust Account.
SB 5738 was referred to the Senate Ways and Means Committee but was never scheduled for a hearing.