Washington Capital Gains Tax Survives State Court Scrutiny (1)

A Friday ruling upholding Washington’s new state capital gains tax already has its challengers eyeing the US Supreme Court.

The state high court rejected arguments that the tax is unconstitutional, finding it is a permissible excise tax.

“The capital gains tax is appropriately characterized as an excise because it is levied on the sale or exchange of capital assets, not on capital assets or gains themselves,” Justice Debra L. Stephens wrote for the 7-2 court.

The ruling provides clarity for Washington taxpayers and the state ahead of Tax Day when the payments will be due for the first ...