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| The
Washington State Supreme Court on February 3, 2005 (9 to 0 decision)
upheld the 1981 Initiative 402 and identified areas that the Washington
State Department of Revenue had not followed the law. Two specific
areas were: 1)RCW 83.100.050(1)(b) read, “No Washington return
need to be filed if no federal return is required,” and 2)RCW
83.100.030 still provided explicitly that the Washington estate
tax was “A tax in an amount equal to the federal credit….”
The Department of Revenue and their attorneys could not understand
those twenty-three words. (See Supreme Court Ruling)
The Department of Revenue had intimidated tax payers to file tax returns and pay Washington estate taxes when neither was required. The Court decision supported the tax payers and ordered refunds. In
retaliation to the court’s decision supporting the tax payers
the 2005 Washington State Legislature obliterated Initiative 402
(repealed I-402) and created a 10% to 19% death tax. Reportedly
it is the highest of the 16 remaining states that still have death
taxes. Collectively with the Federal estate tax it totals as high
as 74%.
Then an emergency clause was added when no emergency existed.
The emergency clause prevented a challenge for |
