Seattle’s payroll expense tax is expected to become the city’s largest tax source this year
Seattle’s Office of Economic and Revenue Forecasts (OERF) presented the April 2024 revenue forecast on Monday. (The presentation is here and the full forecast is here.) The OERF estimates that payroll expense tax (PET) revenues will increase from $315.2 million in 2023 to $394.7 million in 2024. The PET is a highly volatile tax source—it […]
February 29 , 2024 - Emily Makings
Legislature passes bill making long-term care benefits portable
The Legislature has passed SHB 2467, which would allow employees who move out of state to continue to participate in the long-term services and supports (LTSS) trust program. The House passed the bill on Feb. 12 and the Senate passed it (with no amendments) yesterday. (A broader bill that would make benefits portable as well […]
February 15 , 2024 - Emily Makings
A reduction to the capital gains revenue forecast, and some budget context
During yesterday’s Economic and Revenue Forecast Council (ERFC) meeting, ERFC Executive Director Dave Reich said that the capital gains revenue forecast was adjusted down because of a double count in fiscal year 2024 and a coding error by the Department of Revenue. As a result, compared to the November 2023 forecast, revenues from the capital […]
February 09 , 2024 - Emily Makings
Unemployment insurance for striking workers?
Currently, striking workers are ineligible for unemployment insurance (UI) benefits in Washington. SB 5777 would make striking workers eligible for UI at the earlier of the Sunday following the first day of the strike or the date the strike ends. Additionally, under current law, employees who are represented by a multi-employer bargaining unit are ineligible […]
February 08 , 2024 - Kriss Sjoblom
The truly good news about Washington state in the new ITEP report
On January 9, the Institute on Taxation and Economic Policy (ITEP) released the 7th edition of its widely cited “Who Pays” study. Ostensibly, the good news in this report is that Washington state’s state and local tax system is no longer the most regressive in the U.S. and that the tax rate on the poorest […]
February 02 , 2024 - Emily Makings
Making benefits portable and other long-term care program changes could increase premiums by 0.03% to 0.05% (and does statute allow funds to be used out of state?)
The state’s long-term care program, for which premiums began to be collected on July 1, 2023, is called the long-term services and supports (LTSS) trust program in statute. State law requires biennial actuarial audits of the program. The most recent actuarial audit was performed by Milliman in 2022. It estimated that the 0.58% premium rate […]
February 01 , 2024 - Emily Makings
Does Washington need a dedicated revenue stream for digital equity programs?
The title of HB 2327 says it is “an act relating to providing a revenue stream to fund digital equity programs.” Indeed, it would provide quite a revenue stream. HB 2327 would impose a new wireless device tax on each sale of a smart wireless device (i.e., anything capable of wireless access to the internet), […]
January 30 , 2024 - Emily Makings
PSSB 5770 would increase the property tax growth limit for local governments and change property tax provisions related to King County
SB 5770 was introduced late in the legislative session last year but wasn’t enacted. As introduced, it would have increased the statutory property tax limit factor from 101% to 103% for all taxing districts—including the state. Under current law, property tax collection growth is generally limited to the lesser of 101% or 100% plus inflation, […]
January 29 , 2024 - Emily Makings
Businesses with fewer than 50 employees could be required to pay the employer portion of the premium for the paid family and medical leave program
Throughout 2022, the paid family and medical leave (PFML) program was in financial trouble. In response, the Legislature acted in 2023 to change the program’s rate structure and appropriated $200 million from the general fund–state to seed a reserve for the program. Financial data presented to the PFML advisory committee this month indicates that no […]
January 25 , 2024 - Emily Makings
Bills controlling rent and taxing rental income would reduce housing supply
Bills are moving in the Legislature that would impose statewide residential rent control policies and levy the business and occupation (B&O) tax on rental income. As economists have shown, negative impacts would be felt by both renters and landlords, and the statewide housing supply would suffer. Rent Control HB 2114 was approved by the House […]