Washington Governor Jay Inslee has proposed several taxes in his version of the 2019-20 state budget that will directly affect Commercial Real Estate in our state:
New Capital Gains Tax of 9%: Current version of this legislation includes commercial real estate properties
Progressive Excise Tax reform: Effectively doubling the state excise tax on CRE transactions over $5M
66% Increase in the B&O Tax: This is targeted at service businesses, including medical, architectural, legal, accounting, real estate, and consulting These taxes will have a MAJOR impact on our industry if they are implemented. Below is a summary provided by Washington REALTORS. We strongly suggest you review and share with all of the brokers in your offices, and to share with your clients, because they will ALL be impacted:
There are four things you can do to help RIGHT NOW: Voice your opinion to your legislators via phone call or email. If you are unsure who the legislators are in your district, they can be looked up here:
Washington State District Finder
Share with your brokers and ask them to reach out to their legislators. Share with your clients and ask them to reach out to their legislators Register and attend Washington REALTORS Legislative Day in Olympia on Thursday, January 24, to directly lobby, in person, state legislators with other WSCAR members on this issue (see below)
WSCAR’s lobbying efforts will be critical in 2019. We hope you can attend Hill Day 2019 to help lobby and meet your legislators as these taxes are extremely adverse to our industry.