We previously provided an update regarding the enactment of a capital gains tax (the “Tax”) in the State of Washington (read about it here). In that article, we noted the Tax was subject to at least one lawsuit in Washington. That lawsuit resulted in the trial court striking down the Tax, which caused an appeal to the Washington State Supreme Court (the “Court”). On March 24, 2023, the Court overruled the trial court, upholding the Tax (read the complete decision here) in a 7-2 decision. The Court remanded the matter to the trial court for further proceedings.
As this is breaking news, we intend to more fully analyze the Court’s 76-page ruling. We will also be monitoring for additional appellate and trial court proceedings with respect to the Tax.
If you have questions or comments about Washington’s new capital gains tax, or other state and federal tax issues, please contact Dan Eller or M. John Way to discuss a possible consultation.
This article summarizes aspects of the law. It does not constitute legal advice, nor does it create an attorney-client relationship. For legal advice for your situation, you should contact an attorney.
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