The Yakima-Klickitat Farm Association Joins Lawsuit Challenging Washington Income Tax

The Yakima-Klickitat Farm Association has partnered with business and builder organizations to legally challenge Washington state’s new 9.9% tax on annual incomes exceeding $1 million. Though the tax is aimed at high earners, the agricultural group argues it will negatively impact farmers who have strong financial years or those forced to liquidate large equipment assets to fund their retirement.

• The Legal Argument: Plaintiffs argue the tax violates the state constitution, citing a 1933 precedent (Culliton v. Chase) which classified income as property and limited property taxes to 1%.

• Future Concerns: Agriculture leaders worry that if the tax is upheld, lawmakers will eventually lower the $1 million threshold to target lower income brackets.

• Timeline: Unless overturned by the courts, the tax is scheduled to take effect in 2028.

For more details, you can read the full piece by Don Jenkins on the Capital Press.