AGC’s Construction Advocacy Fund supports capital-gains lawsuit — Washington State Attorney General Bob Ferguson asked the State Supreme Court to take direct review the Superior Court’s ruling on Washington’s capital gains tax law that passed the Legislature in 2021. AGC of Washington’s newly created Construction Advocacy Fund (CAF) made a financial contribution to the “Opportunity for All Coalition” which is the effort trying to overturn the law with a lawsuit.
As you may recall on March 1, a Douglas County judge ruled that that the state violated the Constitution with a 2021 law that levies a 7% tax on capital-gains income above $250,000 for the sale of stocks, bonds and businesses.
In the lawsuit against the tax, plaintiffs argued that a capital-gains tax — whether it’s called an excise tax or not — is still an income tax as defined by the Internal Revenue Service.
The outcome of this lawsuit may not be the final word on this issue, as there have been several ballot measures filed with the Secretary of State’s office to overturn the capital-gains tax law.
Contact Michele Willms with any questions.