The legislature finds that relying on higher property taxes to fund education is burdensome on working families; therefore, the legislature intends to ask the citizens of Washington to reduce the state property tax levy and impose a commensurate new tax. The legislature finds that this will mitigate some of the imbalance in the state's tax structure and ensure everyone is paying their fair share.
Beginning January 1, 2020, a tax is imposed on all individuals for the privilege of selling or exchanging long-term capital assets, or receiving Washington capital gains. The tax equals eight percent multiplied by the individual's Washington capital gains. The law also discusses who is liable under the law and who is considered a beneficial owner.
All revenue must go into the state general fund.