New 2022 Laws for Washington State
If you are considering a move to Washington State, you may want to know the newest laws that became effective January 1, 2022.
7% tax on the sale of stocks, bonds, and other high-end assets in excess of $250,000
This is a controversial proposal that was narrowly passed. This law is the state’s first capital gains tax. There are at least two lawsuits that are challenging the constitutionality of this bill because opponents say this is a tax on income. Washington State does not have a state income tax.
This bill (SB 5096) certainly caught the attention of Washington Realtors as Realtors were concerned this could be another tax for home sellers who made a profit in excess of $250,000 from their home sale. (Home sellers currently pay a graduated excise tax based on the sales price, not on the profit. Read more about the excise tax sellers pay when they sell their homes.
As this new law stands, all real estate sales are exempt from this tax along with several other exemptions including timber and timberlands, assets held in retirement accounts, and a deduction of tax for the sale of qualified family-owned small businesses.
Long-term care tax – currently on hold
This is another contentious bill but this is currently on hold by Governor Inslee to allow time for legislators to refine the bill.
In its current form, HB 1323 is meant to be a fund for eligible adults to collect up to $36,500 for long-term care expenses like in-home care, hearing aids, memory care, necessary home renovations, and delivered meals. This would come from a mandatory tax that would use a 0.58% payroll tax to pay up to the $36,500 benefit. For an earner making $75,000 a year, this tax would amount to about $435 a year.
Self-employed workers would not be required to pay for this benefit. Again, as it is now, employers do not need to withhold this tax.
Critics of this measure point out that employees would pay into this benefit for ten years before being eligible to get the funds for long-term care needs, and does not address what happens if a Washingtonian moves to another state.
Increasing the minimum wage to $14.49/hour
Hourly wage earners aged 16 and older received an 80-cent hourly increase from last year. This increase is based on a cost-of-living adjustment for Washingtonians.
Prohibiting the inappropriate use of Native American names, symbols, or images as public school mascots, logos, or team names.
There have been past resolutions asking all school districts to review building names, mascots, logos, activities, and the like but SHB 1356 states that public schools may not use Native American names, symbols, or images as mascots, logos, or team names.
Public schools located within a tribal reservation are exempt.
Reduce single-use food service wares.
Beginning this year, food service businesses may only provide single-use utensils, straws, condiment packaging, and beverage cup lids only if the customer requests it. This bill SB 5022 is to manage solid waste, limit plastic packaging, and the amount of post-consumer recycled content in certain plastic products.
Restore voting eligibility for people convicted of a felony offense
Effective this year, people whose voting rights were revoked after being convicted of a felony will be eligible to vote again. This restores voting rights to up to 20,000 Washington residents.