Business taxes took center stage today in Olympia. While the morning started with a work session in the Senate Trade and Economic Development Committee on how to reform the state's hated Business & Occupation Tax (B&O), the afternoon began with Governor Inslee's attempt to re-define what a tax increase is.
At noon today the final piece of the state's 2013-15 budget debate will fall into place as the March Revenue forecast is officially released. Due to the impact of the federal sequester, indications are that the currently projected nearly $2 billion increase in revenue for the next budget will be slightly reduced. While this will still mean revenues will be growing, it will likely fall short of funding the projected baseline spending increases and new policy adds Olympia would like to pursue.
Not only are title only bills (essentially blank pieces of legislation) not the most transparent way to introduce changes to state law (or perhaps too translucent) but they are used by lawmakers to circumvent the state Constitution. This is why it is disappointing to see 26 title only bills (13 in the House by Rep. Hunter and 13 in the Senate by Sen. Hill) introduced today. Budget chairs typically introduce title only bills so they "don't get stuck" at the end of session.
Here are some of the titles of the 26 title only bills (HB 2003-2015 and SB 5870-5882) introduced today:
With just hours to go until today's 5 p.m. cutoff in the Legislature, it isn't looking promising for SJR 8205 (Supermajority for taxes) being brought to the floor in the Senate for a vote. The proposed constitutional amendment would implement the policy adopted by the voters on five separate occasions over the past 20 years (since 1993) that tax increases require a 2/3 vote of the Legislature or voter approval.
Tomorrow (March 10) marks the beginning of National Sunshine Week - a time dedicated to celebrating the importance of the people's right to know and the need for strong open government laws. Judging from rumors in the House Rules Committee, the sun may continue to shine bright on Washington's landmark public records law.
In the aftermath of last week's State Supreme Court ruling striking down the 20 year-old law requiring a 2/3 vote of the Legislature or voter approval to raise taxes, several of the policy's opponents have been trumpeting that the will of the majority will now be able to stand against the "tyranny of the minority."
The Senate Rules Committee yesterday moved SB 5851 (Creating a defined contribution retirement plan option for public employees) to the Senate floor for a possible vote before cutoff. The bill would create a new optional defined contribution pension plan for current state workers and for new hires.
With today's long awaited ruling by the State Supreme Court striking down the five-time voter approved requirement first enacted in 1993 that tax increases receive a 2/3 vote of the legislature or voter approval, what happens next?
That depends on our lawmakers.
Although in a 6-3 ruling the Court has removed this policy question directly from the voters, it made clear that:
Based on the overwhelming support for I-1053 in 2010 and I-1185 in 2012 (both passing with 64%) it is safe to say that Democrats, Republicans and Independent voters across the state support the requirement for tax increases to receive a 2/3 vote or be sent to voters for approval. Despite I-1185 passing in 44 of the state's 49 legislative districts, however, that support does not appear to extend to Democrats in the Legislature (with a few exceptions).
A bipartisan bill to ensure tax preferences identify legislative intent and have performance metrics was introduced today by Senators Tom, Billig, Hill, Hobbs and Murray. Here is the intent section for SB 5843:
Jason Mercier is Director of the Center for Government Reform at Washington Policy Center. He is a contributing editor of the Heartland Institute’s Budget & Tax News, serves on the board of the Washington Coalition for Open Government, and was an advisor to the 2002 Washington State Tax Structure Committee. In June 2010, former Governor Gregoire appointed Jason as WPC’s representative on her Fiscal Responsibility and Reform Panel. Jason holds a Bachelor’s degree in Political Science from Washington State University.