Port of Seattle seeks $82.7M tax levy Legislature: Don’t collect capital gains tax until Supreme Court rules

to implementing the capital gains income tax.

“It is black letter law that statutes declared unconstitutional are deemed void ‘from the beginning’ or ab initio — they have no legal effect whatsoever and the law treats them as if they never existed,” CADF Executive Director Jackson Maynard wrote in the Oct. 5 letter, addressed to John Ryser, DOR acting director.

Then on Nov. 3, Attorney General Bob Ferguson asked the Supreme Court to stay the lower court’s ruling with respect to tax collecting, calling the decision “incorrect, and is at the very least debatable.” He argued that “It would be profoundly irresponsible for the Department to fail to prepare to collect the tax in April 2023 as directed by statute.”

To clarify the situation, the Joint Administrative Rules Review Committee of the Washington State Legislature wrote to Ryser requesting that “the Department amend the proposed rule to include language that the rule serves as guidance and only applies if the capital gains tax authorized under chapter 82.87 RCW is ruled constitutional and valid by the Washington Supreme Court.”

Wording to that effect is now displayed on the DOR webpage pertaining to RCW 82.87.

Meanwhile, a source familiar with the matter has confirmed to The Center Square that the state Supreme Court will consider Ferguson’s motion to stay the lower court ruling on Nov. 29.

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