According to official documents, Jeff Bezos, the founder of Amazon, intends to sell 50 million shares of Amazon stock. This decision comes after he made a move from Seattle to Miami, Florida, in November last year. Bezos initiated a trading plan on November 2, which allows him to sell up to 50 million shares by January 31, 2025.
The move to Florida, known for its lack of capital gains tax unlike Washington state, where Bezos previously resided, influenced his decision. Washington implemented a 7% tax on financial asset sales in 2022, which Bezos sought to avoid. The state's Supreme Court upheld the legality of this tax in 2023.
Bezos, while residing in Washington, faced potential tax bills amounting to $70 million for every $1 billion of Amazon stock sold. With Amazon's stock priced at around $169 per share, Bezos stands to make approximately $8.5 billion from the sale of 50 million shares. Consequently, Washington state is estimated to lose around $595 million in capital gains tax revenue.
Before the capital gains tax was enforced in 2022, Bezos had already sold over $8.8 billion worth of Amazon stock in 2021. Forbes reported that this would have generated about $616 million in tax revenue. The tax, introduced in 2022, yielded over $889 million in its first year, with Bezos potentially contributing 67% of the total revenue through his share sales.
The revenue generated from the capital gains tax supports various educational programs, including early childhood education and common school construction.