WA’s new capital gains tax brings in far more than expected

Victor K • June 16, 2023
A magnifying glass is sitting on top of a map of the world.

Washington's new capital gain tax is predicted to generate about $849 million in the initial year after the passing of the law. This is more than the initial projection which effectively means that more funds can now be spent on public schools across the state. The new law passed in 2021 imposes a 7% tax on the sale or exchange of stocks, bonds, and select assets exceeding $250,000. Even with a lot of legal battles going around the new law, was finally upheld in the Supreme Court in March 2022.

 

The original calculations for 2022-23 were about $248 million. However, as of last month, the state has collected a total of $601 million which is almost twice what was projected. It is worth noting that this figure could still change as approximately 2,500 taxpayers who have filed for extensions submit their returns, according to the state Department of Revenue.

 

If the same trend continues for the last fiscal quarter of 2023, there will be more funds available for K-12 schools, early childhood education, and school construction and repair projects. The first $500 million collected after the new tax implementation have been set apart for the state's Education Legacy Trust Account, which is for public schools only. However, any surplus amount will be directed towards the state's construction budget, specifically for school construction projects said Senator Christine Rolfes. Therefore, if the projected $849 million figure holds, more schools could receive assistance for their construction needs.

 

However, sometimes predictions regarding capital gain can be completely wrong since it depends upon revenue generated by the stock market and investment returns. To prevent state programs from becoming reliant on this revenue source, lawmakers have decided to allocate the surplus above $500 million to one-time construction projects rather than ongoing program funding.

 

Although the $849 million figure easily exceeds the predictions for the 2022-23 fiscal year this is for the first year of tax. Subsequent years of taxation will see a change due to approval required through the legislative session to clear any funds collected through the said tax which are above the predicted figure.

 

However, Senator Mark Mullet, the senate leader on the construction budget emphasized the importance of giving priority to schools located in areas with lower property values. Such areas often encounter difficulties in garnering support for levies aimed at financing their educational infrastructure.

 

In conclusion, the new tax law performed greatly in its first year of inception surpassing the predicted figure. The extra amount collected will be used to uplift K-12 schools, early childhood education, and school construction projects. However, the unpredictability of capital gain tax coupled with legal modalities of over-the-predicted value profit might bring down the surplus amount in future years.

 

Furthermore, getting to know about tax law and construction codes might not be easy for someone who lacks prior knowledge. In this case, one can always take the expert opinion from one of the many professionals at United Seattle right away!

USL2 Single-Source vs. Multi-Sub Bidding: Cost and Schedule Impact for GCs

By Victor K • September 22, 2026
General contractors or GC often look out for a complete package in their commercial subcontractor Seattle. The enormous task of combining multiple commercial construction subcontractor Seattle for a single project is a recipe for disaster and all GCs know this well. However, when it comes to selecting that one, the cost bid must not be the only criterion. The lowest bid might not have the overall expertise that is required for the project. GCs can bundle all the tasks and award them to one construction management subcontractor. However, the cost comparison between a single commercial subcontractor Seattle or multiple ones is not linear as lower coordination costs, fewer scope gaps, and better schedule control must also be taken into account. Total Installed Cost Vs. Trade Pricing In simple mathematical terms, the total project cost is just the amount the commercial subcontractor Seattle charges the GC. However, factors like Trade bid price, coordination cost, schedule exposure and change-order exposure must also be taken into account while pricing for a singular or multiple construction management subcontractors. The GC can simply request a quote for each task, generate competition and get the lower cost. However, the factors listed account for additional cost in this scenario as the GC needs to coordinate multiple contracts, schedules, site mobilizations, foremen, RFIs, submittals, invoices, inspections, and handoffs. A single-source commercial subcontractor Seattle like United Seattle may cost more than a competitive breakdown of subtasks but the additional factors are eliminated and long-term cost and time savings are achieved. Schedule Float Vs. Small Bid Difference Multiple tasks have multiple timelines which are often linear rather than parallel. This means that one commercial construction subcontractor Seattle needs to wait for the other one to complete their task before starting. An ideal example of this is flooring and drywall installation. One cannot be done before the first task is completed. A delay in the earlier task can lead to delays, extra cost and rising disputes, all of which have a price tag that the GC has to pay. Therefore, calculations are to be carried out before using multiple contractors rather than one. For example, if a bundled subcontractor costs $30,000 more than the combined lowest trade bids but gives the project team additional schedule flexibility and reduces the likelihood of a costly sequencing delay, that $30,000 should not be evaluated in isolation.

How to Vet a Commercial Subcontractor Seattle Before You Sign

By Victor K • September 14, 2026
Learn how to vet a commercial subcontractor before signing. Check licensing, bonding, insurance, safety, capacity, references, and project management.

Why General Contractors Are Consolidating Trades Under One Subcontractor

By Victor K • August 25, 2026
Managing a construction project is not just about outsourcing all the tasks; it involves much more than meets the eye. It is about being on the project from start to end and checking that all timelines are being followed by every commercial subcontractor Seattle. Scheduling and adhering to timelines are among the most challenging tasks, as it can result in loss of time and resources. The ideal method for a general contractor is to select a commercial construction subcontractor Seattle that provides all the required services. The result can be a more coordinated workflow, clearer accountability, and fewer opportunities for one trade to disrupt another.= The Challenge of Managing Multiple Trade Subcontractors Generally, a major construction job consists of multiple facets, resulting in the hiring of multiple commercial subcontractors in Seattle. These tasks include siding , roofing, flooring , interior design and paint jobs . Different construction management subcontractors bring different flavors to the table and managing them takes special skills on the part of the general contractor. These various companies also bring their own timelines which can result in slowing down the project as most of these tasks need to be completed in a series manner rather than in parallel. The main challenge is not the number of commercial subcontractor Seattle involved in the project but handling their cohesiveness. Every additional handoff creates another opportunity for something to fall through the cracks.
More Posts

We Offer All the Services You Need in One Place! We Will Save You Time and Money!

Call Us at (425) 332-8088 Now to Get a Free Estimate or a Free Consultation for Any of Our Services!

Contact Us