The bill seeks to amend the capital gains tax regulations under chapter 82.87 RCW by closing existing loopholes and enhancing clarity within the law. Key provisions include the introduction of a nonrefundable capital gains tax credit, effective from tax year 2025, which replaces the previous business and occupation tax credit. The bill also establishes a late payment penalty waiver, modifies the publication schedule for inflation adjustments, and changes the distribution of funds to the following fiscal year. Additionally, it introduces new definitions related to capital gains, such as "intangible personal property" and "tangible personal property," and outlines a nonclaim period while ensuring that certain provisions will expire on January 1, 2026, without affecting existing rights and liabilities.

Further amendments focus on the treatment of spouses and state-registered domestic partners for tax purposes, clarifying that they are not considered separate taxpayers. The bill also adjusts deadlines and penalties related to tax filings, including a change in the adjustment date for applicable amounts based on the consumer price index from December to October. It emphasizes electronic filing and payment methods, detailing conditions under which penalties may be waived for taxpayers demonstrating good faith compliance. Additionally, new requirements for brokers and barter exchanges regarding the electronic submission of IRS Form 1099-B are introduced, with penalties for non-compliance. The bill's key provisions are set to take effect on January 1, 2026, and it includes a clause for nullification if specific funding is not secured by June 30, 2025.

Statutes affected:
Original Bill: 82.04.4497, 82.87.020, 82.87.060, 82.87.070, 82.87.080, 82.87.100, 82.87.110, 82.87.120, 82.87.150, 82.08.0206, 82.32.090
Substitute Bill: 82.04.4497, 82.87.020, 82.87.060, 82.87.070, 82.87.080, 82.87.100, 82.87.110, 82.87.120, 82.87.150, 82.08.0206, 82.32.090
Bill as Passed Legislature: 82.04.4497, 82.87.020, 82.87.060, 82.87.070, 82.87.080, 82.87.100, 82.87.110, 82.87.120, 82.87.150, 82.08.0206, 82.32.090
Session Law: 82.04.4497, 82.87.020, 82.87.060, 82.87.070, 82.87.080, 82.87.100, 82.87.110, 82.87.120, 82.87.150, 82.08.0206, 82.32.090