OLYMPIA, Wash. – The Washington State Supreme Court will review a lower court’s decision against Washington’s new capital gains tax on wealthy residents.
State Attorney General Bob Ferguson asked the court to hear the case and bypass the state Court of Appeals.
State lawmakers passed the tax on the sale of stocks, bonds and some other high-value assets of wealthy individuals and couples.
A superior court judge agreed with opponents who call it an income tax that’s banned under the state constitution.
Supporters say it’s a tax on assets rather than income, and is a step toward tax fairness in a state that relies heavily on sales taxes.