Blog

Capital gains tax collections have come in higher than anticipated

The state’s March 2023 revenue forecast assumes that capital gains tax revenues will total $248.0 million in fiscal year 2023 (which ends on June 30). All of that would go to the education legacy trust account (ELTA). By statute, the first $500 million (adjusted for inflation annually) in collections goes to the ELTA (which is […]

State continues to treat working families tax credit as a spending program instead of a revenue reduction (plus, remittances to date)

This is the first year in which low-income Washingtonians can claim the working families tax credit (WFTC). According to the Department of Revenue (DOR), through May 15, the state has returned $83 million to 175,886 taxpayers. The 2023 supplemental operating budget appropriates $221.0 million for WFTC remittances in FY 2023. (And the fiscal note for […]

Budget appropriates $200 million for a reserve for the paid family and medical leave program

Last month Gov. Inslee signed SSB 5286, which makes changes to the paid family and medical leave (PFML) program rate structure. Beginning with calendar year 2024, the PFML rate will be set to maintain a three-month reserve for the program. (See here for more about the bill.) The family and medical leave insurance (FMLI) account […]

State property tax collections leveled off in 2022, after several years of unfettered growth

State property tax collections grew by just 0.4% in fiscal year 2022, according to data released by the Department of Revenue last month. That’s the smallest annual increase going back to at least 1998, but it comes after four years that recorded the highest growth in collections. During the high growth period, the state property […]

Proposed real estate excise tax bill would increase the top rate (but not for commercial properties for two years)

Tomorrow morning SHB 1628 is scheduled for executive session in the House Finance Committee. SHB 1628 would increase the real estate excise tax (REET). (I wrote about the original version here.) As approved by the House Committee on Local Government in February, the bill would increase the top REET rate to 4.0% for the portion […]

Under Senate and House budget proposals, paid family and medical leave premium rate could increase to 0.82% or 0.83% next year

SSB 5286, which would make changes to the paid family and medical leave (PFML) rate structure, has been passed by both the Senate and the House. I described the bill here. The bill requires the premiums to be set to maintain a new three-month reserve. The legislative task force on paid family and medical leave […]

Tax policy, benefit policy, and economic impact provisos in the budget proposals

The Senate and House 2023–25 operating budget proposals include various provisos related to tax policy, benefit policy, and economic impacts. (This post refers to the budget proposals as passed by the Senate and approved by the House Appropriations Committee.) First, the Senate proposal would reauthorize the Tax Structure Workgroup (TSWG). In December, the TSWG recommended […]

Legislators have $3 billion more in revenues than when they wrote the current budget

Gov. Inslee’s operating budget proposals were based on the November 2022 revenue forecast, but legislators will rely on the March forecast. As Kriss reported yesterday, compared to the November forecast, the March revenue forecast increased the estimated revenues for the current biennium, but decreased estimated revenues for the next two biennia. Altogether, over the budget […]

A history of legislative diversions from the public works assistance account

SJR 8201, which was approved Feb. 16 by the Senate Ways & Means Committee, would amend the state constitution to establish a public works revolving trust account. (Ways & Means also approved the implementing legislation, SSB 5303.) Under the proposed constitutional amendment, when local governments repay their public works loans, the funds would be deposited […]

The current wealth tax proposal would apply to financial assets over $250 million, down from $1 billion in the 2021 version

The wealth tax bills proposed in the Legislature this year (HB 1473 and SB 5486) are very similar to the 2021 proposals (which Kriss described here). A major difference is a dramatic increase in the amount of financial assets that would be subject to the tax. HB 1473 (which was heard by the House Finance […]