ACLU and advocates file lawsuit over Compassion Seattle ballot initiative columbian.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from columbian.com Daily Mail and Mail on Sunday newspapers.
Excise or income? Washington state capital gains tax already faces a lawsuit here’s what to know
April 29, 2021 at 10:23 am
(Bigstock Photo)
The conservative Freedom Foundation filed a lawsuit Wednesday in an effort to stop the capital gains tax approved by the Washington state legislature only four days ago. The legislation places a 7% excise tax on the sale of stocks, bonds, and businesses the first tax of its type in state history.
The lawsuit, expected by both proponents and opponents of the new tax, asserts that the new tax is illegal under the Washington state constitution which sharply limits income taxes. Backers of the tax, approved in the form of SB 5096, counter that the tax isn’t an income tax at all but an excise tax which is common and legal in the state.