SB 5314 Washington Senate · 2025-2026 Regular Session

Modifying the capital gains tax.

SB 5314 modifies Washington's capital gains tax by updating several provisions. It replaces an expiring business and occupation tax credit with a new, nonrefundable capital gains tax credit, designed to prevent double taxation on the same sale or exchange. The bill also clarifies definitions related to capital gains and losses, ensures consistent treatment for spouses and domestic partners, and establishes a late payment penalty waiver. Additionally, it introduces new reporting requirements for brokers and barter exchanges. These modifications are not estimated to change overall state or local tax collections.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Apr 2025

Senate Passage

Apr 2025

House Passage

Apr 2025

Signed into Law

May 2025

Introduced Jan 16, 2025 Signed May 20, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Substitute Bill → Substitute Passed Legislature · 3 edits

MINOR

The bill was finalized and passed by both the Senate and House of Representatives, moving from a draft version to an enacted law. The text of the act itself was updated to reflect the legislative history, including the addition of a new funding contingency clause that makes the entire law null and void if specific funding is not approved by June 30, 2025.

Scope change

The scope of the bill's applicability remains unchanged; the changes are procedural and related to the bill's enactment status and funding conditions.

FISCAL

Added a new section (Sec. 17) stating that if specific funding is not provided by June 30, 2025, the entire act becomes null and void.

TIMELINE

Added certification headers confirming the bill was passed by the Senate on April 18, 2025, and the House on April 11, 2025.

TECHNICAL

Updated the bill title to reflect it is now the 'Substitute Passed Legislature' version and corrected a minor grammatical error in the summary ('creating a new section' changed to 'creating new sections').

Floor votes · Senate Apr 18, 2025 · House Apr 11, 2025

How they voted

32–19

Passed

Total votes 51

Apr 18, 2025

D Democratic31

31 Yea

100% Yea

R Republican20

1 Yea 19 Nay

95% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 20, 2025

Signed into law

Governor signed.

executive

Apr 22, 2025

Lower · Passed

Speaker signed.

lower

Apr 19, 2025

Upper · Passed

President signed.

upper

Apr 18, 2025

Upper · Passed

Passed final passage; yeas, 30; nays, 19; absent, 0; excused, 0.

upper

Apr 18, 2025

Upper · Passed

Senate concurred in House amendments.

upper

Apr 11, 2025

Lower · Passed

Committee amendment(s) adopted with no other amendments.

lower

Apr 11, 2025

House · Passed

House Vote: pass (60-38-2)

house

Apr 8, 2025

Committee

Referred to Rules 2 Review.

lower

Apr 4, 2025

Lower · Passed

Minority; without recommendation.

lower

Apr 4, 2025

Lower · Passed

Minority; do not pass.

lower

Apr 4, 2025

Lower · Passed

APP - Majority; do pass with amendment(s).

lower

Apr 4, 2025

Lower · Passed

Executive action taken in the House Committee on Appropriations at 1:30 PM.

lower

Apr 2, 2025

Lower · Passed

Public hearing in the House Committee on Appropriations at 4:00 PM.

lower

Mar 24, 2025

Committee

Referred to Appropriations.

lower

Mar 20, 2025

Lower · Passed

Minority; do not pass.

lower

Mar 20, 2025

Lower · Passed

FIN - Majority; do pass.

lower

Mar 20, 2025

Lower · Passed

Executive action taken in the House Committee on Finance at 1:30 PM.

lower

Feb 18, 2025

Upper · Passed

Minority; without recommendation.

upper

Feb 18, 2025

Upper · Passed

Minority; do not pass.

upper

Feb 18, 2025

Upper · Passed

Executive action taken in the Senate Committee on Ways & Means at 4:00 PM.

upper

Jan 28, 2025

Upper · Passed

Public hearing in the Senate Committee on Ways & Means at 4:00 PM.

upper

1 primary · 2 co-sponsors