Opinion of the Justices

To the House of Representatives:

The undersigned justices of the supreme court submit the following answers to your questions with respect to House bill 584 contained in your resolution adopted May 5, 1977, and filed with the court on May 9, 1977. Interested parties were permitted to file memoranda until May 23, 1977. None was received.

House bill 584 would impose a 5% tax on the net income of resident individual taxpayers derived from the sale or exchange of capital assets as determined by reference to federal law.

Your first question is whether net income derived from the sale or exchange of…