Blog

New WEIA revenues would be used to supplant other funds for higher education

In 2019, the Legislature imposed a business & occupation (B&O) tax surcharge on certain businesses to help fund higher education. Under current law, 14.3% of collections from the 1.75% B&O tax rate for businesses in the “service and other activities” category is deposited in the workforce education investment account (WEIA). Additionally, all the revenues from […]

Adopted taxes include the state’s largest tax increase (plus, how B&O rates would be impacted)

The operating budget, as passed by the Legislature, includes revenues from substantial new taxes. These taxes and the transportation revenue package would all make the list of the largest state tax increases. As I noted over the weekend, the impact of these taxes to funds subject to the outlook (NGFO) is $9.379 billion over four […]

Operating budget conference report would increase NGFO appropriations by 8.2%, and revenue package would increase revenues by $9.4 billion over four years

The conference report for the operating budget would appropriate $77.872 billion from funds subject to the outlook (NGFO) in 2025–27. That is an increase of $5.927 billion (8.2%) over enacted appropriations for 2023–25. (The 2025 supplemental would increase 2023–25 appropriations by $751.8 million.) Although the budget does assume significant savings, it doesn’t reduce spending on […]

Consumers would bear the cost of increased B&O taxes

In an editorial, the Seattle Times writes that the tax increases proposed by legislators “will in the end hit those residents they say they’re trying to help.” The Institute on Taxation and Economic Policy (ITEP) agrees. A recent ITEP post considers a business and occupation (B&O) tax proposal that would add a surcharge on income […]

Three major tax bills for the operating budget have been passed by the Legislature

The Legislature has passed three of the major operating budget tax bills (ESSB 5794, ESSB 5814, and ESSB 5813). The three others (SHB 2081, SHB 2077, and SHB 2049) are scheduled for executive session in the Senate Ways & Means Committee this afternoon. ESSB 5794 As adopted, ESSB 5794 would apply or increase business and […]

B&O tax proposal would increase B&O revenues by 24.2% over the forecast in 2027–29

PSSB 5815 and PSHB 2081 would increase business and occupation (B&O) taxes. The bills include a temporary surcharge and permanent rate increases. According to the draft fiscal note, the proposal would increase revenues to funds subject to the outlook (NGFO) by $2.442 billion in 2025–27 and by $3.943 billion in 2027–29 (the first biennium it […]

New tax proposals would include the state’s largest tax increases

The new tax package proposed by House and Senate Democrats this week includes five proposals to increase revenue. These and two other major tax bills are scheduled for executive session in the Senate Ways & Means Committee tomorrow. All would make the list of the state’s largest tax increases. They include: The table shows the […]

Bills would increase capital gains tax and estate tax rates

Increases to the capital gains tax and estate tax rates are included in the new tax package proposed by House and Senate Democrats. (I wrote about their B&O and sales tax proposals earlier.) SB 5813 and HB 2082 are identical; fiscal notes are not yet available. Capital Gains Tax The current capital gains tax rate […]

Sales tax proposal would apply the sales tax to more services (and includes a budget gimmick)

The new tax package proposed by House and Senate Democrats this week includes SB 5814 and the identical HB 2083. The bills would subject more services to the sales tax and more products to the other tobacco products tax. They would also require businesses to make a one-time prepayment of sales tax collections. (Fiscal notes […]

B&O tax proposal would permanently increase tax rates and impose a temporary surcharge

Several new tax bills have been introduced in the Legislature this week. PSSB 5815 and HB 2081 would increase business and occupation (B&O) tax rates. Taxes paid by Washington businesses are already the 10th highest in the country on a per-employee basis, and Washington businesses already pay about half of all state and local taxes. […]