Blog

Capital gains revenue forecast drops considerably

As Kriss wrote yesterday, the June forecast for revenues to funds subject to the outlook (NGFO) is down $476.7 million in 2023–25 and $189.0 million in 2025–27 compared to the February forecast. Reduced estimates of capital gains tax revenues are a major factor. For FY 2023, the state collected $847.5 million in capital gains taxes. […]

Capital gains tax revenues for tax year 2023 dropped by almost half

According to the Department of Revenue (DOR), the state has collected $433 million in capital gains taxes for tax year (TY) 2023 as of May 17. As of Jan. 2024, DOR had reported that TY 2022 capital gains collections totaled $896 million. However, based on the new information from DOR, it appears that additional late […]

Seattle’s payroll expense tax is expected to become the city’s largest tax source this year

Seattle’s Office of Economic and Revenue Forecasts (OERF) presented the April 2024 revenue forecast on Monday. (The presentation is here and the full forecast is here.) The OERF estimates that payroll expense tax (PET) revenues will increase from $315.2 million in 2023 to $394.7 million in 2024. The PET is a highly volatile tax source—it […]

Legislature passes bill making long-term care benefits portable

The Legislature has passed SHB 2467, which would allow employees who move out of state to continue to participate in the long-term services and supports (LTSS) trust program. The House passed the bill on Feb. 12 and the Senate passed it (with no amendments) yesterday. (A broader bill that would make benefits portable as well […]

A reduction to the capital gains revenue forecast, and some budget context

During yesterday’s Economic and Revenue Forecast Council (ERFC) meeting, ERFC Executive Director Dave Reich said that the capital gains revenue forecast was adjusted down because of a double count in fiscal year 2024 and a coding error by the Department of Revenue. As a result, compared to the November 2023 forecast, revenues from the capital […]

Unemployment insurance for striking workers?

Currently, striking workers are ineligible for unemployment insurance (UI) benefits in Washington. SB 5777 would make striking workers eligible for UI at the earlier of the Sunday following the first day of the strike or the date the strike ends. Additionally, under current law, employees who are represented by a multi-employer bargaining unit are ineligible […]

The truly good news about Washington state in the new ITEP report

On January 9, the Institute on Taxation and Economic Policy (ITEP) released the 7th edition of its widely cited “Who Pays” study. Ostensibly, the good news in this report is that Washington state’s state and local tax system is no longer the most regressive in the U.S. and that the tax rate on the poorest […]

Making benefits portable and other long-term care program changes could increase premiums by 0.03% to 0.05% (and does statute allow funds to be used out of state?)

The state’s long-term care program, for which premiums began to be collected on July 1, 2023, is called the long-term services and supports (LTSS) trust program in statute. State law requires biennial actuarial audits of the program. The most recent actuarial audit was performed by Milliman in 2022. It estimated that the 0.58% premium rate […]

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, […]