Jeff Bezos to save nearly $1 billion in capital gains taxes by not living in Washington State
Jeff Bezos in November 2022
(JUST THE NEWS) – Amazon founder Jeff Bezos has filed a notice with the U.S. Securities and Exchange Commission to sell 25 million of the company's shares currently worth about $5 billion.
In November, the word's second richest man announced he was leaving Seattle after nearly 30 years of living in the area to move to Miami, Fla. That translates into the Evergreen State losing out on approximately $938 million this year from its former resident.
That's because Washington has a 7% capital gains tax on the sale or exchange of long-term capital assets, such as stocks, bonds, and business interests. In 2021, the Legislature passed and Gov. Jay Inslee signed into law a capital gains income tax above $250,000 a year aimed at the state’s wealthiest residents. A lawsuit challenged the tax's constitutionality, but in March 2023, the state Supreme Court held that it was constitutional. Florida does not have a capital gains tax.