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Washington’s tax structure is nation’s 16th least volatile, and revenues are holding up better during the recession (so far) than in many other states

The Puget Sound Business Journal (PSBJ) reported last week on an event with former Washington governors Gregoire, Locke, and Evans. According to the PSBJ,   All three governors said the state should create a more fair, progressive tax system that provides stability in recessions. Washington’s current tax system, relying heavily on sales taxes, has proven […]

Good news for state and local transportation budgets: state Supreme Court finds I-976 unconstitutional

Today the state Supreme Court held that Initiative 976 is unconstitutional because it “contains more than one subject, and its subject is not accurately expressed in its title.” I-976 was approved by voters last year. It would have limited vehicle license fees to $30, revoked the authority of transportation benefit districts to impose vehicle fees, […]

More on Boeing and taxes

Scott Hamilton of Leeham News and Analysis wrote last week about Boeing’s decision to move 787 production to South Carolina, and about the company’s recent history in Washington. Hamilton particularly points out the odd response from some that this decision should trigger a review of the company’s tax treatment. He also argues that the state […]

New brief: ESJR 8212: A Constitutional Amendment to Treat Long-Term Care Funds the Same as Other, Similar State Funds

ESJR 8212 would amend the state constitution to allow money in the new long-term care services and supports trust account to be invested in stocks. If approved by voters in November, this would put the new long-term care fund on the same investment footing as the state’s retirement funds, industrial insurance trust funds, and funds […]

New report: School Funding: Accounting for the Billions Spent in Response to McCleary

In response to the McCleary decision, and as part of the Legislature’s adopted school funding reforms, state spending on public schools increased $14.244 billion or 110.0 percent from 2009–11 to 2019–21. Over the same period, all other state spending increased by just 52.0 percent. In addition to increasing spending, the Legislature increased the state property […]

Increasing aerospace taxes would be counterproductive for Washington

The news that Boeing will move 787 production from Everett to South Carolina is disappointing, though not unexpected given the crippling effects of COVID-19 on airplane demand. Gov. Inslee and others have responded by suggesting that Boeing should be paying more in state taxes. In a statement, Gov. Inslee said, “Boeing’s decision to take the […]

State revenues not as bad as expected; federal debt headed off the charts

Washington isn’t the only state in which the recession’s impact to revenues is now expected to be not as bad as initially feared. Pew reports that Colorado, Michigan, and New Jersey are expecting higher revenues than previously forecast. Bloomberg adds California and Georgia to that list. According to Bloomberg, The figures are an early sign […]

What will happen to calls for tax increases?

Since the June revenue forecast, many legislators and others have suggested that the state would need  to increase taxes to address the budget shortfall. Will the September revenue forecast change those discussions? Revenues from our current tax structure are now forecast to increase by 9.3 percent from 2017–19 to 2019–21 and by 7.9 percent from […]

State and local taxes in Washington have increased over the past several years compared to other states

The U.S. Census Bureau has released state and local government finance data for 2018. In Washington, state and local taxes increased by 10.4 percent over 2017. This includes property taxes, sales and gross receipts taxes, and motor vehicle license taxes. (For other states, it also includes income taxes.) To compare Washington’s taxes to other states, […]

Seattle City Council passes payroll tax, with a 20-year sunset clause

The Seattle City Council has passed the “payroll expense tax” that was approved by the Budget Committee last week. (Mayor Durkan has not yet acted on the bill, but it was passed by the Council with enough votes to override a veto.) As passed by the full Council, the tax will sunset Dec. 31, 2040. […]