2017 Hill Day Series: Mullet discusses proposed capital gains tax with REALTORS®
Senator Mark Mullet, 5th District – Issaquah, discussed the Governor’s budget proposal with REALTORS® visiting his office in Olympia. He expressed skepticism that any of the Governor’s revenue proposals would be adopted by the legislature. Mullet is on record as opposing a new state capital gains tax. He is a small business owner and former financial services professional experienced in foreign currency trading.
Governor Inslee has proposed a 7.9% tax on income from capital gains, including all real estate except for single-family dwellings. While most sources of retirement income would be exempt, real estate is not, even though it is a major source of retirement or college savings for many families. Washington already taxes all real estate transfers at one of the highest rates in the nation, based on the entire sales price – not just the gain.
David Irons, key contact for Senator Mullet, discussed the situation of a client who recently decided not to purchase a 14 unit rental property for $1.75 million because the proposed tax would make the investment less competitive than other equity options.