From LWVWA 3/30/25 Action Legislative newsletter:
This week’s Action Alerts are all related to the new revenue necessary for the state budget to be balanced with minimum reductions in levels of service. See an overview of the current budget proposals HERE.
These bills are scheduled for public hearings this week. The League supports a balanced tax structure that is fair, adequate, flexible, and has a sound economic effect. These bills in combination are consistent with that position. None of them will be sufficient if enacted without the others.
PRIORITY ACTIONS
Financial Intangibles Tax. SB 5797 This bill would establish a tax of $10 on every $1,000 of assessed value of certain financial assets (stocks, bonds, exchange-traded funds, and mutual funds) held by individuals with more than $50 million of these assets, paid by about 4,300 wealthy individuals. It generates approximately $4 billion per year starting in fiscal year 2027 and will be allocated for public schools, helping the state uphold its paramount duty with new, increased funding for special education services and the growing daily operating costs of running our public schools. Sign in PRO for SB 5797 HERE before 3:00 pm on March 31.
Removing the Cap on Employer Payroll Taxes. SB 5796 This bill would establish a 5% tax on large employers on the amount of payroll expenses above the Social Security threshold, which is currently $176,100 per year. This tax is limited only to companies with $7 million or more in payroll expenses— about 5,289 companies. The proposal is similar to the city of Seattle’s “JumpStart” tax and includes a full credit for businesses already paying that tax. It would raise about $2.3 billion per year once fully implemented, going to public schools, health care, and other programs that protect the safety and wellbeing of the public and provide basic needs assistance for seniors and those with developmental disabilities. Sign in PRO for SB 5796 HERE before 3:00 pm on March 31.
Allowing Property Tax to Grow by Population and Inflation. SB 5798 This bill would raise the property tax growth limit for the state’s common schools levy and for cities, counties and special purpose districts, from the current 1% cap to the combined rate of population growth plus inflation. Local governments have the option to take a lower growth rate if they so choose. Instead of being tied to an arbitrary number, it would allow the growth limit to reflect the actual cost of providing public safety and related services. The proposal also completely exempts participants in the “Property Tax Exemption for Senior Citizens and People with Disabilities” program from paying the state property tax, giving a tax reduction for some of our most vulnerable community members.
The state property tax is dedicated to public schools, with about $779 million in additional funding over the full four-year budget cycle, while increased funding in cities and counties would go to public safety, criminal justice, and community protection. Sign in PRO for SB 5798 HERE before 3:00 pm on March 31.
Repealing Ineffective & Obsolete Tax Preferences. SB 5794 This bill would repeal 20 tax exemptions where the public policy objective was not met, it is unclear whether the policy objective was met, or the exemption is legally obsolete, according to nonpartisan auditors at the Joint Legislative Audit & Review Committee. It includes in-state hauling, gold bullion, prescription drug wholesalers, and more. This generates just over $1 billion over the full four-year budget cycle for public schools, health care, and social services. Sign in PRO for SB 5794 HERE before 3:00 pm on March 31.
Cutting the Regressive Sales Tax. SB 5795 As cost of living rises, Washington’s current regressive tax code puts an additional strain on households already struggling to meet their basic needs. This proposal reduces this disproportionate impact on low- and middle-income households with a half-point sales tax reduction, from 6.5% to 6% – a decrease in revenue of approximately $1.3 billion per year. Sign in PRO for SB 5795 HERE before 3:00 pm on March 31.
For additional action items, which help pass bills the League supports on specific issues, click on the see all action alerts, and take action on the ones you are most interested in. Thank you for your support for the League’s issues!
There are many more action alerts in this weeks legislative newsletter! Get the LWVWA Legislative newsletter delivered direct to you by subscribing here.