Blog

Capital gains bill advances

In January, Emily wrote about the capital gains tax included in Gov. Inslee’s budget proposal and introduced as SB 5096. On February 16, the Senate Ways and Means Committee passed substitute version of the bill, SSB 5096.As passed by the committee, the tax rate is 7%, down from 9% in Gov. Inslee’s proposal. In the […]

Washington’s revenue growth since the pre-Great Recession peak is now second highest in the nation

In our policy brief about how Washington does not have a budget shortfall, we showed how state revenues have continued to increase through the current recession. We also noted that our revenue growth compares favorably to other states. Pew has now released new data that shows that Washington’s tax revenue growth from the pre-Great Recession […]

A sweetened beverage tax would help fund public health

SB 5371 would impose a statewide tax on distributors of sweetened beverages, with the intent to lower consumption of sweetened beverages and promote both foundational public health and health equity. Under SB 5371, the tax rate would initially be 1.75 cents per fluid ounce. The rate would be increased by inflation each July 1. Distributors […]

A wealth tax for all?

A bill has been introduced in the state house of representatives that would impose a 1 percent wealth tax on financial assets held by the state’s wealthiest residents. This bill, house bill 1406, received a hearing before the house finance committee on Tuesday. The text of the bill is here. The fiscal note for the […]

There’s no need to raise taxes (especially if there’s no need to use the rainy day fund)

Geekwire reports that in a hearing this week on the proposed wealth tax, Gravity Payments CEO Dan Price said, of the wealth tax, “We have a $3.3 billion budget deficit that needs to be closed. There’s an easy way to close it.” Washington does not have a $3.3 billion budget deficit. The Economic and Revenue […]

Bill would tax wireless devices to purchase computers for students and teachers

HB 1450 would tax the sale of smart wireless devices to fund the purchase of computers and “associated peripheral devices” for students and teachers. (The bill was heard by the House Committee on Education this morning.) The bill would levy a tax on each retail sale of smart wireless devices in Washington. If the selling […]

Proposed covered lives tax would fund public health, but not until 2023

One of the new taxes in Gov. Inslee’s operating budget proposal is a “covered lives assessment.” This charge on health insurers would fund “new and ongoing investments in foundational public health services.” The tax has been introduced as SB 5149, and the bill was heard by the Senate Committee on Health & Long Term Care […]

New brief: Taxing Captive Insurance

Captive insurers are insurance companies that are controlled by the company, group, public entity, or individual they insure. They can provide a less costly way to manage risk. Current law in Washington does not recognize captive insurers as a distinct form of self-insurance that is different from commercial insurance. The Office of the Insurance Commissioner […]

Scenarios in the Tax Structure Work Group preliminary report

As usual, many new taxes have already been proposed in the Legislature this year. Meanwhile, there is a separate effort to more broadly study Washington’s tax structure, which won’t be complete for several years. The Tax Structure Work Group’s (TSWG) preliminary report was released at the end of December (here is the technical report). (I […]

Bill would exempt amounts businesses have received in government-funded grants and forgiven loans from the B&O tax (and other state taxes)

Through Aug. 8, 2020, 107,659 paycheck protection program (PPP) loans were made to businesses in Washington. The total amount of the loans was $12.465 billion. Nationally, $525.012 billion was loaned to 5,212,128 businesses. The program was first established in the federal CARES Act, to provide funding for businesses—mainly to keep employees on the payroll during […]