Will capital gains tax elude Washington lawmakers yet again?

It’s the final week of Washington’s 105-day legislative session.

As the hours count down, a number of big issues are still being negotiated: the budget, the governor’s climate bills, and what to do about a recent Supreme Court ruling that threw out the state’s drug possession law.

And state Democrats' long-sought holy grail, a capital gains tax, could elude them yet again.

If passed, it would impose a 7% tax on capital gains over $250,000, excluding real estate, retirement portfolios and businesses grossing less than $10 million a year.

Sponsors say the tax would affect about 9,000 wealthier Washingtonians a year — out of nearly four million taxpayers — and that it would raise an estimated $500 million each year.

The tax would be a key part of funding Democrats' budget proposals if approved.

There was optimism that 2021 would be the year for a capital gains tax to succeed in Washington, Northwest News Network's Austin Jenkins told KUOW's Angela King.

Almost from day one, the atmosphere was favorable, thanks to its approval in the state Senate, which had not lent enough votes in the past.

"Now, the question is: Might the idea falter in the last mile of marathon," Jenkins said.

That last mile is centered on differing opinions among House and Senate Democrats over whether the tax should be inoculated against the possibility of a ballot referendum.

April 25 is the last day of the 2021 Washington legislative session.