Why does Washington not collect income tax?

Answer 1

Because the state's Supreme Court voted it down.

When the state income tax went on the ballot in Washington state (in the Great Depression), it was very popular with voters. The logic went something like this:

1. The state has to get money from somewhere.
2. That basically means taxes.
3. The more money the state makes from an income tax, the less it needs to make from property taxes.

With that in mind, voters who had a lot of land but low income (such as farmers) figured that an income tax was a great bargain for them; they didn't have much income (Great Depression, remember) but they did have a lot of land so property taxes affected them a lot more than an income tax would.

After the law was passed, several people (presumably those with high incomes) challenged it in court. The state Supreme Court, one member short because one of the judges had a heart condition that prevented him from attending, deadlocked 4 to 4 on the law. The Governor, a Democrat who favored the income tax, appointed a new judge that he believed would almost certainly vote for the income tax.

But when the case was reheard with the new judge, the tax was declared illegal by a 5-4 margin.