Blog

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 […]

HB 1628 would increase the maximum REET rate to fund affordable housing—but how much would go to which accounts?

Until 2020, the real estate excise tax (REET) was a flat 1.28% tax on the selling price of real estate. In 2019, the Legislature graduated the rate, which reduced the rate for some taxpayers and increased it for others. (We wrote about the change in this policy brief.) Under current law, the maximum rate is […]

Meaningful reviews of state spending over time do not present spending only as a share of personal income

SSB 5082 would repeal the non-binding advisory votes on tax increases that have been on ballots since 2012. It would also require voters’ pamphlets to include a link to a website that provides specified budgetary information. This appears to be a nod to transparency and a sop to voters—who put the advisory votes in place […]

Bill would use a portion of estate tax collections to fund the developmental disabilities community services account

SB 5099 would deposit “extraordinary” estate tax revenues into the developmental disabilities community services account (DDCSA) instead of the education legacy trust account (ELTA). The DDCSA was created in 2005 and may be used for “supports and services in a community setting to benefit eligible persons with intellectual and developmental disabilities.” It is currently funded […]

Gov. Inslee’s budget would balance over four years, but total reserves at the end of 2025–27 would be just $2.411 billion

Yesterday the Economic and Revenue Forecast Council (ERFC) adopted an official budget outlook based on Gov. Inslee’s operating budget proposal. It estimates that the budget would leave an unrestricted ending balance in funds subject to the outlook (NGFO) of $275 million over four years. But there is uncertainty about the economy and the constitutionality of […]