Key Findings

1. Washington’s 2021-23 budget is balanced, there are billions of dollars in reserves, and state revenues have grown substantially over the past year.

2. State officials have projected revenue growth of nearly $8 billion.

3. SB 5932 would reduce the state’s sales tax by a full percentage point, taking the tax rate down from 6.5% to 5.5%.

4. SB 5769 would reduce the property tax, B&O tax and repeal the capital gains income tax and long-term care payroll tax.

5. By adopting either SB 5932 or SB 5769, the legislature would put in place substantial tax relief to help Washingtonians deal with the rising cost of living in the state.

Introduction

Washington’s 2021-23 budget is balanced, there are billions of dollars in reserves, and state revenues have grown substantially over the past year. In response to this strong fiscal outlook, Senators have filed two major bipartisan tax relief bills. The bills are SB 5932 (to cut the state sales and use tax rate) and SB 5769 (to reform the state tax system by providing tax relief to residents, employees, and employers). Adoption of either proposal would provide Washingtonians significant tax relief and directly benefit everyone living in the state.

Click here to read the full Legislative Memo.