Blog

Businesses in Seattle pay 64% of city taxes

A new analysis from ECONorthwest (prepared for the Downtown Seattle Association) looks at taxes in Seattle. According to the report, “Since 2013, City of Seattle taxes collected have grown by 94 percent, while employment grew by 19 percent and population grew by 22 percent.” The city’s main sources of tax revenue have historically been property, […]

City of Seattle’s November revenue forecast shows weakened real estate excise tax expectations; year-over-year regular general fund revenues are about flat

The City of Seattle’s Office of Economic and Revenue Forecasts (OERF) presented its November revenue forecast on Wednesday. General fund revenues over the 2022 through 2024 period are now estimated to be down by a net of $9.4 million compared to the revenues anticipated in Mayor Harrell’s proposed 2023–24 budget. General fund revenues over that […]

Some good news on long-term care program solvency

In 2020, after passage of Washington’s long-term care (LTC) program but before any premiums were assessed, Milliman prepared an actuarial study of the program for the state. It estimated that the statutory premium rate of 0.58% would “be insufficient to keep the program solvent for 75 years under the current law.” Given that and widespread […]

How the paid family and medical leave and long-term care payroll taxes will impact employees next year

As I wrote yesterday, the paid family and medical leave (PFML) premium will increase from 0.6% to 0.8% next year (including a solvency surcharge). The PFML premium is paid on wages up to the Social Security cap, which is increasing 9.0% next year to $160,200. Additionally, the state’s long-term care (LTC) program is scheduled to […]

Paid family and medical leave premium rate will increase to 0.8% next year

The Employment Security Department (ESD) has announced that the premium rate for the paid family and medical leave (PFML) program will be 0.8% in 2023. (The announcement was made at today’s meeting of the PFML advisory committee.) The current rate is 0.6%, which is the maximum base rate allowed by statute. The 0.8% rate includes […]

Social Security contribution base will increase by 9.0% next year, increasing the wages subject to Washington’s paid family and medical leave premiums

Yesterday the Social Security Administration announced that the amount of wages subject to the Social Security tax will increase from $147,000 in 2022 to $160,200 in 2023. The 9.0% increase in the contribution base is the largest since 1983. In Washington, paid family and medical leave (PFML) premiums are assessed on wages up to the […]

Should the working families tax credit be treated as an appropriation or a revenue reduction?

The Department of Revenue (DOR) is one of just 10 agencies that have requested smaller general fund–state (GFS) budgets for 2023–25 than 2021–23. It is asking for a GFS budget reduction of $290.4 million (by far the largest reduction among the agencies). This is due to DOR’s request for a technical correction to the accounting […]

Milliman: Current statutory maximum for paid family and medical leave premiums is “too low”

Financial problems with the state’s paid family and medical leave (PFML) program surfaced at the beginning of this year. (For more information, read our analysis of the situation, including background information and a review of legislative changes this year.) Consequently, the Legislature required the Office of Financial Management (OFM) to contract with an entity for […]

Document recording surcharges are not yielding the revenues expected for housing programs

Washington has four document recording surcharges that are used to fund homelessness programs. Today the Department of Commerce told the House Appropriations Committee that revenues from these fees are falling short of estimates. (Commerce’s presentation to the committee is available here.) Indeed, Commerce’s 2023–25 budget request includes a placeholder at maintenance level that would address […]

New brief: Washington’s Business Taxes Continue to Exceed National Average

Washington state’s businesses bore much of the tax burden for fiscal year 2020, delivering nearly half of state and local tax revenue. Nationally, Washington’s business taxes were the 9th highest per employee, the 32nd largest as a share of economic activity, and the 17th greatest as a share of total state and local tax revenue. […]