Will SCOTUS Take Up Case On Legality Of Retroactive Tax Laws?

As states look for ways to raise new revenue, many have turned to a dubious tactic in which tax laws are amended and made retroactive to force once paid up persons to cough up more dough. In Washington, the state retroactively applied estate tax changes back to the year 2005 which forced many to reopen returns and potentially pay additional money to state. The law was challenged by taxpayers but the Supreme Court of Washington upheld the legality of the statute. The case was appealed to the U.S. Supreme Court and is currently awaiting a response to their petition for certiorari which argues that the retroactive changes are unfair and violate the due process of those affected. If this ruling is affirmed, then the ability of states to reach back in time for more money could unleash a flood of activity by legislatures looking to fill budget gaps. This would be a massive headache for estate planners since it would create a shifting goal-line and make it almost impossible to know the exact tax burden an estate will carry.

See Matthew Boch & Mark Yopp, How Far Back Can a Back Tax Go? Petition for Certiorari in Hambleton Asks Supreme Court to Right Unjust Retroactivity, Inside SALT, July 14, 2015.