In his ruling Friday, Judge Brian Huber said the tax is unconstitutional because it doesn’t apply to everyone uniformly. Rather, the tax applies only to people whose profits from settling capital assets exceed $250,000 a year.
Past state court rulings have treated income as property, and the state constitution says property must be taxed at a flat, uniform rate, Huber said.
Huber said the capital-gains tax doesn’t meet that constitutional standard because everyone with less than $250,000 in capital gains per year is exempt.
State officials had argued that the capital gains tax isn’t an income tax, meaning those rules don’t apply. But Huber disagreed, calling the capital-gains tax merely
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