January 2023 Bar Bulletin
By Howard M. Goodfriend
The Supreme Court recently granted the State of Washington’s motion to stay pending appeal the Douglas County Superior Court’s ruling invalidating the ESSB 5690 — the Legislature’s 7% tax on capital gains in excess of $250,000.1 As enacted and signed into law in 2021, the tax applies to transactions occurring on or after January 1, 2022.2 By staying enforcement of the superior court’s order, the Supreme Court allowed the Department of Revenue to promulgate rules and create tax forms and instructions to taxpayers while the Supreme Court considers the constitutionality of the capital gains tax after hearing argument in its...