Law book with a gavel – Tax law

A law book with a gavel - Tax law

TUMWATER — The Washington Supreme Court this week will hear a Douglas County case that struck down the state’s new capital gains tax.

Judge Brian Huber ruled last year that the tax on capital asset sales over $250,000 in value in one year was unconstitutional, in a lawsuit brought by more than a dozen wealthy individual plaintiffs plus the Washington Farm Bureau. The Supreme Court will hear argument from both sides in the case in a Tumwater hearing room on Thursday.

The high court's decision to hear the state’s appeal bypasses a traditional hearing in the lower appellate court. Judge Huber’s ruling remains suspended until the Supreme Court renders its decision.

Back in November, the Supreme Court said the state can begin planning how to collect the new tax, effective this April. The revenue would go to fund education and school construction in the state.