Fiscal bills introduced in the Legislature; tax cuts being considered and adopted across the country.

As noted earlier, the governor is not currently proposal general tax relief. The Washington Research Council has published a roundup of some fiscal legislation introduced this year, including some bills that would cut taxes.

Second, SB 5769 (L. Wilson) would add a $250,000 homestead exemption to the property tax, eliminate the business and occupation tax for manufacturers, repeal the capital gains tax, and repeal the state’s long-term care program.

Finally, HB 1898 (Orcutt) would re-base the state property tax in CY 2023 by reducing the highest levy for the regular state property tax by $1.099 billion and for the additional state property tax by $920.0 million. According to the bill, after making property tax changes to help address the McCleary decision on school funding, “property values across the state have continually increased at a much faster pace than anticipated, resulting in an estimated property tax revenue collection in tax years 2018 through 2022 that is more than $2,000,000,000 more than was intended to be collected in the McCleary fix.”

Jason Mercier, with Washington Policy Center, has a different roundup, this of tax relief measures being considered in other states. He begins by reviewing the bidding in Washington. 

The Governor pivoted away from the tax cut question, instead talking about all the spending needs he sees for the state (7:02 mark of TVW video).

The House Majority Leader said most of the billions in surplus revenues are “one-time funds,” despite the fact the revenue forecast is projecting billions in growth over at least a four-year period (5:35 mark of TVW video).

Asked if a sales tax cut would be on the table, the Senate Majority Leader said we may see “targeted” tax relief, but broad-based tax cuts are unlikely since he believes we have so many spending needs facing the state (2:50 mark of TVW video).

We direct you to his post for more on what other states are doing. We’ll just note that his lists includes significant tax cuts under consideration in New York and California