Capital Gains Tax

A capital gains tax bill (HB 2967) is getting a hearing in the House Committee on Finance Friday, February 16. The time and location have not been announced, but that doesn’t mean it’s too early to start taking action! Click here to send a message to all the members of the House Committee on Finance. See a list of the Finance Committee members. You can also send an email in support to your legislators using the email formula [email protected], or call the toll free number:  1-800-562-6000.

This bill will create a 7% tax on annual capital gains of single individuals exceeding gains of $25,000 and joint filers exceeding $50,000. A person’s residential property, retirement accounts, and certain agricultural properties are exempted from the tax. Proceeds from the tax go into the Educational Trust Fund. The Capital Gains Tax is designed to provide property tax relief, reducing tax regressivity by replacing property tax revenue, dollar for dollar, with a tax on those more affluent.