LACEY, WA - This morning the Washington Supreme Court issued its decision regarding the constitutionality of a capital gains tax which was passed into law by the state legislature in 2021. For years, Washington Farm Bureau (WFB) policy has opposed a state capital gains tax as this would be a tax on income, which is unconstitutional in this state. Our organization, along with WFB members Burr and Rosella Mosby, and April Clayton, joined numerous individuals and entities in a suit that progressed to the Washington Supreme Court.

Every other state in the nation and the IRS, recognizes a capital gains tax as an income tax. Within the past 90 years, the question of implementing some form of an income tax has been placed on the ballot 10 times. 10 out of 10 times, voters have rejected the idea.

Today, the court issued a blow to our tax system and the efficacy of the people’s voice. The 7-2 decision by the Washington Supreme Court is a disturbing example of judicial activism at its worst. Washington Farm Bureau encourages those interested to reach out to their legal counsel and/or financial advisor for guidance and understanding as they navigate new expectations.  To read the court’s decision, click here.

In response to today’s decision, April Clayton said, “It’s definitely disappointing and could end up hurting farmers and ranchers that are trying to stay afloat by selling part of the farm.” 

WFB is grateful for the willingness of April and the Mosbys to be a part of this process. It is when individuals take a stand in the face of injustice that real progress can happen.