State capital gains tax repeal fails

COLFAX – A citizen’s initiatie to repeal the state’s capital gains tax appears to have failed.

At press time on Election Day, Tuesday, Nov. 5, Initiative 2109 only had support from 923,017, (36.68%) voters statewide. There were 1,593,095 votes (63.32%) opposed.

Initiative 2109 would have repealed an excise tax on the sale or exchange of long-term capital assets by individuals who have annual capital gains of more than $250,000. Some of those gains could come from the sale of homes and businesses, among other capital assets.

In 2021, the Legislature created the tax on long-term capital assests, but excluded the sale of certain assets including real estate, retirement savings, livestock (if the taxpayer’s income is more than 50% from farming or ranching), depreciable properties, timber and timberland; and certain commercial fishing privileages.

In Whitman County, the initiative garnered 4,305 (38.57%) yes votes and 6,857 (61.43%) no votes.

In Spokane County, the initiative had 86,917, (42.4%) yes votes and 118,078 (57.6%) no votes.

In Adams County, the initiative had 1,449 (52.12%) yes votes and 1,331 (47.88%) no votes.

In Lincoln County, the initiative garnered 2,929 (57.44%) yes votes and 2,170 (42.56%) no votes.

In Stevens County, the initiative has garnered 5,535 (56.47%) yes votes and 4,267 (43.53%) no votes.

Late-arriving ballots will be counted over the next two weeks, prior to certification.