Washington Excise Tax
Washington state residents and nonresidents are now subject to the new excise tax effective January 1, 2022. Washington State Department of Revenue (“Department”) implemented this 7% excise tax on long-term capital gains for individuals to raise revenue to fund educational efforts.
While this tax was deemed unconstitutional by the Douglas County Supreme Court in March of 2022, the state has appealed the decision to the Washington State Supreme Court, where the case is still pending. The first excise tax payment is due April 18, 2023, so taxpayers should be prepared and stay up-to-date on this case as it progresses.