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Senate and House to enter negotiations on capital gains tax

OLYMPIA, Wash. (AP) — The Washington Senate has refused to concur with changes the House made to a measure to create a new tax on capital gains. Now lawmakers from each chamber will start negotiations to see if they can reach a deal before the legislative session ends Sunday.

Part of the changes that the Senate rejected was language added by a House committee that says the tax is necessary “for the support of state government and its existing public institutions” -- which essentially blocks a voter referendum at the ballot.

The version that narrowly passed the Democratic-led Senate last month included an amendment that removed an emergency clause on the bill, which also would have prevented a referendum.