Blog

Does Washington need a dedicated revenue stream for digital equity programs?

The title of HB 2327 says it is “an act relating to providing a revenue stream to fund digital equity programs.” Indeed, it would provide quite a revenue stream. HB 2327 would impose a new wireless device tax on each sale of a smart wireless device (i.e., anything capable of wireless access to the internet), […]

PSSB 5770 would increase the property tax growth limit for local governments and change property tax provisions related to King County

SB 5770 was introduced late in the legislative session last year but wasn’t enacted. As introduced, it would have increased the statutory property tax limit factor from 101% to 103% for all taxing districts—including the state. Under current law, property tax collection growth is generally limited to the lesser of 101% or 100% plus inflation, […]

Businesses with fewer than 50 employees could be required to pay the employer portion of the premium for the paid family and medical leave program

Throughout 2022, the paid family and medical leave (PFML) program was in financial trouble. In response, the Legislature acted in 2023 to change the program’s rate structure and appropriated $200 million from the general fund–state to seed a reserve for the  program. Financial data presented to the PFML advisory committee this month indicates that no […]

Gov. Inslee’s operating budget proposal would leave total reserves of $2.186 billion at the end of the outlook period

Today the Economic and Revenue Forecast Council (ERFC) adopted the official outlook for funds subject to the outlook (NGFO) based on Gov. Inslee’s supplemental operating budget proposal. The ERFC estimates that, at the end of the outlook period, the governor’s budget would leave an unrestricted NGFO ending balance of $76 million and total reserves of […]

Bills controlling rent and taxing rental income would reduce housing supply

Bills are moving in the Legislature that would impose statewide residential rent control policies and levy the business and occupation (B&O) tax on rental income. As economists have shown, negative impacts would be felt by both renters and landlords, and the statewide housing supply would suffer. Rent Control HB 2114 was approved by the House […]

Treasurer’s fiscal recommendations for the Legislature, and an improved credit outlook for Washington from S&P

Earlier this month, the Office of the State Treasurer (OST) released its annual Debt and Credit Analysis report, which provides data on state debt and recommendations for the Legislature. At the end of FY 2023, Washington had $21.403 billion in outstanding bonds. That was up just 0.6% from $21.269 billion in FY 2022. (Of total […]

Working families tax credit remittances were much lower than expected in FY 2023; bills would expand eligibility and increase the amount for renters

The working families tax credit (WFTC) began issuing remittances in 2023. Low-income people of any age are eligible if they have children. Low-income people with no children are eligible if they are 25 to 65 years old. The amount of the remittance is based on the number of children and phases out with income. Maximum […]

Bill would require businesses receiving tax preferences to pay for child care

HB 2322, which is scheduled to be heard by the House Finance Committee tomorrow, aims “to increase employer-provided child care for employees.” Under the bill, any business that receives a business & occupation (B&O) tax preference (the state’s terminology for exemptions, exclusions, deductions, deferrals, credits, and preferential tax rates) that is created, expanded, or extended […]

Proposed substitute REET and transfer tax bill would redirect REET revenues to housing accounts and would not meaningfully reduce taxes

Yesterday the House Finance Committee heard a proposed substitute to HB 2276, which would increase a real estate excise tax (REET) threshold and add a new 1% real estate transfer tax. As I wrote last week, the bill as introduced was ambiguous about whether the transfer tax applied to the portion of the selling price […]

January report on state tax collections: revenues for the most recent month were $99.1 million short of the forecasted amount

Yesterday (January 16) the state’s Economic and Revenue Forecast Council (ERFC) issued its monthly report on general fund revenue collections. This report covers payments received between December 11 and January 10 for the sales tax, the use tax, the business and occupation tax, the public utility tax, the tobacco products tax, and penalties and interest […]