Washington state entrepreneurs, farmers and investors are suing for a new excise tax on capital gains to be suspended. This is the second lawsuit against the law before it goes into effect in 2022.
Former Washington attorney general Rob McKenna, a Republican representing the Washington Farm Bureau, and nine people claiming the tax violate a constitutional requirement that taxes be uniform and illegally assign the tax to a resident’s location, not the place of activity that generates the taxable profit.
Democratic Governor Jay Inslee signed a bill on May 4 to impose a 7% excise tax on profits over $ 250,000 per year.