Washington State Can Collect New Capital Gains Tax During Appeal

Washington state’s tax department can collect a new capital gains tax in advance of a state Supreme Court ruling on the tax’s constitutionality, the court’s justices said Wednesday.

The Washington Supreme Court granted a motion from Attorney General Bob Ferguson (D) to stay a trial court judge’s March ruling striking down the tax as an unconstitutional income tax, not an excise tax as the state asserts. Chief Justice Steven C. Gonzalez said in a brief order that the justices voted unanimously to grant the state’s motion without further comment.

Ferguson asked for the stay Nov. 3, saying ...