BOMA also played a key role in defeating proposed new Capital Gains Taxes.The Governor had proposed a 9% Capital Gains tax in his budget and both the state House and Senate considered their own versions a capital gains tax proposal.Considering that BOMA dues are usually one cent per square foot or less a year, the return on this investment when compared to a 9% tax on income from the sale of commercial real estate or even a business is worth doing the math.
Arguments BOMA made opposed to a Capital Gains Tax:
The capital gains tax is an unequivocal burden on the capital we need to grow, prosper and compete in a 21st century global economy.
A Capital Gains Tax would harm economic opportunity in Washington State and would remove the competitive advantage residents and businesses enjoy over other states that levy a tax on income.
Taxes on capital gains are paid by investors and businesses, slow capital formation and reduce wages and employment though reduced vendor contracts.
The tax would force longer hold periods and disrupt commercial real estate sales reducing excise taxes being paid and force increased rents in order to meet the return expectations by investors.
The Washington State Supreme Court has ruled a capital gains tax is an income tax and has disallowed it in multiple rulings and it has been rejected by voters on numerous occasions.
Past decreases in the federal capital gains tax rate has led to higher growth in gross domestic productivity and employment, instituting this tax would do the opposite.
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