Local Plaintiffs Join Legal Battle Over Washington Millionaire’s Tax

A local builder is challenging the constitutionality of the Washington legislature's recently passed "Millionaire's Tax."

Ben and Lauren Petter, a married couple, who are in the construction business in Chelan County have joined a coalition representing individuals, farming interests, builders, a trucking company, minority-owned businesses and the business groups the Building Association of Washington and National Federation of Business in the lawsuit opposing the new tax

Ben Petter is listed as president of Blu Water Homes, a construction company that builds high-end custom homes in Chelan, Leavenworth, and Wenatchee.

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The lawsuit names Washington state, the Washington State Department of Revenue, and its acting director.

The plaintiffs cite a nearly century-old ruling by the Washington State Supreme Court that graduated income taxes are unconstitutional and also defined income as property, which must be taxed uniformly.

The new tax goes into effect in 2028 and levies a 9.9% tax on annual income over $1 million.

Former Supreme Court Justice and State Senator Phil Talmadge, along with former Washington Attorney General Rob McKenna, filed the suit April 9th.

A request by the conservative group Let's Go Washington (LGW) for a referendum vote was denied by Washington Secretary of State Steve Hobbs, who cited language in the bill that blocks a public vote. LGW is petitioning the Washington Supreme Court to allow a referendum on the November ballot.