From new taxes to voting rights to minimum wage, a host of new laws are to take effect in Washington state. Here’s a look at how things will change in the Evergreen State in 2022.
CAPITAL GAINS INCOME TAX
Beginning Jan. 1, the controversial capital gains income tax is set to become effective. It levies a 7% tax on capital gains above $250,000 for individuals and joint filers from the sale of assets such as stocks and bonds. Exceptions include the sale of real estate, livestock, and small family-owned businesses.
First payments aren’t due until 2023, assuming the tax isn’t overturned by the courts. Two lawsuits arguing the tax is unconstitutional are currently working their way through the state’s legal system.
At issue is whether the new law imposes an excise tax or an income tax. And if the latter, whether income is property as defined by the state constitution and subject to its uniformity clause.
LONG-TERM CARE TAX
The state’s new long-term care benefit funded by a 0.58% tax on a worker’s total wages is set to start Jan. 1, maybe.
On Dec. 17, Gov. Jay Inslee and Democratic leaders in the state legislature put out a statement announcing a delay in the collection of the new payroll tax to make tweaks to the program, after a flood of people sought to opt out.
“I am taking measures within my authority and ordering the state Employment Security Department not to collect the premiums from this program from employers before they come due in April,” Inslee wrote. “My...
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