Legal
Legal
Government Affairs
Economic & Labor

BIAW joins lawsuit challenging new income tax

Share this article

April 13, 2026

BIAW joined a diverse group of plaintiffs in a lawsuit filed last week by several legal experts challenging the constitutionality of Washington’s new income tax.

The Citizen Action Defense Fund (CADF), former Washington Attorney General Rob McKenna and former State Supreme Court Justice Phil Talmadge will lead the legal challenge.

“This new income tax will unfairly damage small businesses, especially builders, who have unpredictable highs and lows when it comes to income,” said Greg Lane, BIAW Executive Vice President. “The tax will apply to peak years, even when cash is already committed to land, labor and materials for the next project. Unfairness aside, the new tax is blatantly unconstitutional. We can’t stand by and let the majority ignore the Constitution for political gain.”

BIAW and others vigorously opposed this new tax during the legislative session.

Other plaintiffs in the suit include:

·        Benjamin and Laura Petter – Chelan County and Redmond, WA

·        Robert and Brenda Mercer – Benton and Klickitat Counties

·        Curtis Nuccitelli – King County

·        Ethnic Chamber of Commerce Coalition

·        Yakima and Klickitat Farm Association

·        National Federation of Independent Business

Read more about the lawsuit.

Review the court filings.

Watch the news conference