Fisher Investments pulls out of Washington in wake of capital gains tax decision

A wealth-management company says it's pulling its headquarters out of Washington state in the wake of the state's Supreme Court decision around capital gains taxes.

In a seemingly sarcastic statement, Fisher Investments says: "In honor of the Washington State Supreme Court's wisdom and knowledge of the law, and in recognition of whatever it may do next, Fisher Investments is immediately moving its headquarters from Washington state to Texas."

The move is expected to be completed by June 30.

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Fisher Investments is based in Camas, Washington. The company's headquarters will relocate to Plano, Texas. Fisher is an independent money management firm, founded by billionaire Ken Fisher. The company notes that it manages more than $197 billion in assets globally, and more than $156 billion in private investments. The Seattle Times reports that Fisher employed about 1,800 people in Camas in 2020 (it employs 3,700 globally).

The company has multiple offices around the globe, including sites in Tampa, Florida, the United Kingdom, Ireland, and Germany. The current headquarters switch up is not the first time Fisher Investments has made such a move due to local laws and regulations. When it began construction on its current 120-acre Camas headquarters in 2011, it was part of a move out of California to seek better business regulations, Bloomberg reports, further noting that Fisher is now part of a wave of companies relocating to Texas. That state has fewer business regulations, no income taxes, and lower costs of living.

Washington's Supreme Court upheld the state's capital gains tax last week, under the argument that it is an excise tax and not an income tax. The decision comes shortly before taxes are due in April, making 2023 the first year the capital gains tax will be collected.

Washington's capital gains tax is targeted at profits over $250,000 on assets like stocks and bonds. Retirement accounts and property sales are not included. The Supreme Court's decision has spurred fears that Washington lawmakers could pursue an income tax.