SEATTLE, Wash. – A King County judge has ruled that a legal challenge to the state’s new capital gains tax can move forward.
The Seattle Times reports the challenge is a consolidation of lawsuits brought by a number of groups including the Washington Farm Bureau.
It claims the tax passed by the Democratic majority in the state legislature and signed into law by Governor Inslee creates an income tax.
The law creates a 7% tax on sales of over $250,000 of assets like stocks and bonds.
It does not tax retirement accounts, sales of real estate or other transactions.
The judges ruling means the issue could eventually be decided by the state Supreme Court.