Legal group files challenge to Washington's new income tax, saying it violates state constitution

Citizen Action Defense Fund announced a lawsuit challenging Washington's new state income tax, saying the measure violates the state Constitution's uniformity clause and that income is properly treated as property under long-standing precedent.

"This is not a boxing match," Rob McKenna, a former Washington attorney general who is co-leading the plaintiffs' legal team, said during a press availability. "This is an important question of law." McKenna said the complaint, filed in Klickitat County, argues the law is unconstitutional because the Constitution treats income as property and because the tax is not uniform and exceeds established property-tax limits.

Jackson Maynard, executive director and counsel for the Citizen Action Defense Fund, introduced the individual plaintiffs' — builders Ben and Laura Petter, farmer Rob Mercer and his wife Brenda, and trucker and business owner Nick Nootchitelli — along with four trade associations that joined the suit, and said the group represents individuals and businesses from across the state. "We fight for transparency and constitutional government," Maynard said.

Former Washington Supreme Court Justice Phil Talmadge, who is also on the legal team, said similar issues prevailed in prior litigation over Seattle's graduated income tax. He said the Court of Appeals previously invalidated Seattle's tax on single-subject and uniformity grounds and that the Supreme Court declined review. "The principle that income is property is the linchpin," Talmadge said.

Plaintiffs and business groups framed the suit as protecting small businesses and family-owned firms from uncertainty. Mike Sotelo, president of the Ethnic Chamber of Commerce Coalition, said his organization's roughly 2,000 members would be harmed by the tax's vague provisions and called the measure "not good for business, it's not good for families, it's not good for Washington." Patrick Moran of the National Federation of Independent Business said the litigation matters because small businesses need stability and predictability.

Reporters asked why the complaint was filed in Klickitat County; McKenna and Maynard said plaintiffs include Klickitat County residents and the Klickitat-based farm association, making that county an appropriate initial jurisdiction. Maynard said copies of the complaint and a press release would be made available after the press availability and posted to the Citizen Action Defense Fund website.

The legal team flagged three principal lines of attack: that income is property under Washington law and thus subject to the Constitution's uniformity clause; that the tax is not uniform because it exempts the first $1,000,000 and applies a 9.9% rate above that threshold; and that the legislation may violate the constitutional single-subject rule. McKenna said section 201 of the bill establishes the 9.9% rate on taxable income above $1,000,000.

On timing, Talmadge outlined typical procedural steps after filing: briefing, possible summary-judgment motions, scheduling for argument and potential appeals. He said trial-court scheduling and appellate procedures could result in decisions before the tax's stated implementation window, and both he and McKenna said courts are cognizant of practical time constraints when setting argument calendars.

The plaintiffs described fundraising support from a variety of donors for litigation costs; Maynard said the nonprofit had seen "an outpouring of support from large and small donors around the state." The legal team declined to speculate on lawmakers' motives for passing the bill rather than proposing a constitutional amendment, saying they will present legal arguments to the courts.

The press availability closed with the organizers promising to distribute the complaint and press materials and provide follow-up interviews on request.