Washington Proposal SB 6229 Targets Capital Gains on Startup Stock, Sparking Seattle Tech Backlash Ahead of 2026 Tax Implementation

A new Washington state proposal, SB 6229, aims to tax capital gains from qualified small business stock sales despite existing federal exemptions, prompting concerns from Seattle startup leaders about its potential to discourage local company building. Public hearings are scheduled for January 27, 2026, and the tax would apply to gains on or after that date.

DDave Parker LLeslie Feinzaig WWashington Technology Industry Association AAngelList