The Washington Supreme Court has ruled in a 7-2 decision to uphold the state's new capital gain tax. The decision filed Friday comes just weeks before taxes are due April 18.
The capital gains tax applies to profits over $250,000 from the sale of assets like stocks and bonds.
Lawmakers approved the tax in 2021, but it was challenged in court with opponents arguingit's a type of property tax. Property taxes in Washington are subject to uniformity rules that disallow higher rates for wealthier people. The court's majority rejected that argument, labeling the capital gains tax an excise tax instead.
It's expected to bring in about $2.5 billion in the first six years it's collected, helping pay for education and child care.
State leaders began responding to the news Friday morning, with many who support the tax hailing it as a win for education. Senate Ways and Means Committee Chair Christine Rolfes (D-Bainbridge Island) said in a statement it provides "much needed certainty" as the Legislature crafts the state's next two-year budget.
This story will be updated.
Copyright 2023 Northwest News Network. To see more, visit Northwest News Network. 9(MDEzNzUzNzYwMDEzOTk2NjA5Njg3OTA3OQ001))