Washington state’s capital gains excise tax collections for the 2023 tax year have dropped 47% from the previous tax year, according to data released this week by the Washington state Department of Revenue. 

In Spokane County, however, tax collections have remained essentially flat. 

Capital gains excise taxes collected statewide for the 2023 tax year totaled $416.7 million, following refunds from the 2024 tax year, according to a press release from the Washington state Department of Revenue. That marks a steep decline from $780.4 million collected in the previous tax year.

Capital gains excise tax collections in Spokane County for the 2023 tax year came in at $7.72 million, down 0.5% from tax year 2022, state revenue data shows.  

The decline could affect education funding statewide in 2025. Up to $500 million in revenue collected by the tax each fiscal year is earmarked for the education legacy trust account, with the remainder dedicated to the common school construction account.

Additional funding isn't expected for the common school construction account this year based on current revenue, the release says.

Capital gains taxes are a 7% excise tax on the sale or exchange of long-term capital assets, such as stocks, bonds, business interests, or other investments and tangible assets. The tax applies to individuals and to gains allocated in Washington state.