A new state capital gains tax has been ruled unconstitutional but has been collected since late January of this year. Here is a brief overview of what happened.
Last year, the legislature passed a 7% tax on the sale of stocks, bonds, businesses and other investments, if the profits exceed $250,000. The exceptions to this new law include the sale of real estate, livestock and family-owned businesses. (source)
Washington Attorney General Bob Ferguson asked the state Supreme Court to take up the case on appeal, which the high court agreed to do. The Supreme Court has since given the okay for the DOR to administer and collect the tax in the meantime.
Where we stand now
According to the state of Washington State Department of Revenue, the online system will be made available to taxpayers to report and pay the tax. If the Court eventually finds the statute to be unconstitutional, any tax payments received will be promptly refunded with interest.
What do you think of this information about this new capital gains tax from the state? Do you think it is being handled the right way?
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Disclaimer: Please note that this article is only for educational and informational purposes. Because of the nature of updates, you'll want to confirm that all information is up to date by checking reliable sources such as government websites before making any decisions.