May 01, 2025  -  Uncategorized | Events | Business

Sunday is the BIG DAY!  What that means, we still are not entirely certain but at least we know that sessions do end…eventually.

 

After a busy week of amending and passing tax bills, we are starting to get a clearer picture of the amount of revenue that is booked into the budget.  It appears to be about $5.7 billion in the 25-27 biennium and $6.49 billion in the 27-29 biennium.  This is still the largest package of tax increases in Washington State history – and with the taxes falling primarily on businesses who are also impacted by tariffs – downright scary regarding what the outcome will be to the economy.  “Tax the Rich” seems to have fallen by the wayside (although there is a wealth tax still on the table to test both the Governor and the courts).  The property tax cap lift (highly controversial) has turned into some increased levy authority for schools – but it is authority that many school districts who are property poor are not enamored with.

 

And there are still going to be cuts.  Rumors are flying about what will be cutthe greater scope of cuts will not be known until the budget is released at 10 AM on Saturday morning  - TOMORROW!   

 

At this point, I firmly believe that the Legislature will adjourn Sine Die on Sunday as per the Constitution.  They will send their budget and tax packages to the Governor and see what action he takes.   He could do a number ofthings.  He can sign everything outright and work on things over the interim.  He could let everything become law without his signature – thus sending a message of non-support without upending the budget deal.  OR, he could veto all or pieces of the tax package and/or budget and then call them back in for special session.   

 

For today, I am waiting on a few specific things.  First, what will the Senate Ways and Means Committee actually pass among all the tax and cut bills they will be voting one.  Second, will the Senate and House concur to the conference committee report on UI for Striking Workers (5041) which set a compromise number of weeks at 6 rather than the 12 passed by the Senate and the 4 passed by the House.  Finally, we are waiting for the final votes on the Rent Control bill (HB 1217) where we understand a compromise was reached on the rent cap that would be 7% plus CPI or 10% which ever is lower.

 

We are also waiting for the final transportation budget.  We have been assured that the Puget Sound Gateway is fully funded and also heard that there is going to be language relating to the Mosquito Fleet.  

 

Here are some other details in the transportation budget and revenue package:

 

Key Revenue Measures

• Gasoline Tax Increase: A 6-cent per gallon hike effective July 1, 2025, raising the state gas tax from 49.4 to 55.4 cents per gallon. This tax will be indexed to rise 2% annually for inflation. ​
• Diesel Fuel Tax: An increase of 3 cents per gallon in both fiscal years 2026 and 2028, also indexed to rise 2% annually for inflation. ​
• Heavy-Duty Truck Weight Fee: A new $30-per-ton fee on heavy-duty trucks, expected to generate $317 million over six years, with future increases tied to inflation. ​
• Additional Taxes and Fees:
o Increased taxes on vehicle sales, rental cars, luxury vehicles, and private jets.
o A $1 per attendee fee on operators of stadiums and other venues with a capacity of 17,000 or more.
o $138 million projected from violations captured by new speed cameras in work zones. ​
• Sales Tax Reallocation: Starting in the 2027–2029 biennium, 0.3% of the state sales tax will be redirected to the transportation budget, contributing approximately $800 million annually. ​

Major Investments and Projects

• Infrastructure Projects:
o Safety upgrades on State Route 18.
o Continued development of the North Spokane Corridor.
o Progress on the Puget Sound Gateway Project. ​
• Environmental and Sustainability Initiatives:
o Ongoing removal of fish passage barriers.
o Implementation of carbon reduction strategies. ​
• Public Transportation Enhancements:
o Funding for the Washington State Department of Transportation, Department of Licensing, and Washington State Patrol to support their roles in maintaining and improving the transportation system. ​

Policy Changes

• Tolling Expansion: Introduction of tolling on the entire State Route 520 corridor, not just the floating bridge segment. ​
• Ferry System Modernization: Mandating the use of biodiesel fuel for state ferries. ​
• Zero-Emission Incentives: Providing a sales tax exemption for zero-emission buses to encourage cleaner public transportation options. ​

 

On a tragic note, South Sound lawmaker Senator Bill Ramos passed away suddenly while on a trail run near his home.  This has hit his legislative colleagues very hard and I believe this is the first time a sitting legislator has passed away during the time they are in session. 

 

At this point exhaustion has set in and I believe even the controversial bills will eke out of here with one vote margins.  Everyone just wants to go home.

 

Budget and Taxes

 

Bill Details

Status

Sponsor

Priority

Position
 

Local real estate excise tax

C 159 L 25

Paul

High

 

 

Increasing the flexibility of existing funding sources to fund public safety and other facilities by modifying the local real estate excise tax.
 

Deed of trust assignment/fee

C 100 L 25

Scott

High

 

 

Eliminating the exemption for assignments or substitutions of previously recorded deeds of trust from the document recording fee and the covenant homeownership program assessment.
 

Public safety funding

Del to Gov

Entenman

High

Support

 

Improving public safety funding by providing resources to local governments and state and local criminal justice agencies, and authorizing a local option tax.
 

SHB 2020(SB 5777)

Payment card processing/tax

S Ways & Means

Berg

Medium

 

 

Creating a business and occupation tax deduction and increasing the rate for persons conducting payment card processing activities.
 

ESHB 2049 (SB 5812)

K-12 education funding

S Ways & Means

Bergquist

High

 

 

Investing in the state's paramount duty to fund K-12 education and build strong and safe communities.
 

SHB 2077(SB 5811)

Zero-emission vehicle prg.

S Ways & Means

Fitzgibbon

Medium

 

 

Establishing a tax on certain business activities related to surpluses generated under the zero-emission vehicle program.
 

ESHB 2081 (SB 5815)

Business and occupation tax

S Ways & Means

Fitzgibbon

High

 

 

Modifying business and occupation tax surcharges, rates, and the advanced computing surcharge cap, clarifying the business and occupation tax deduction for certain investments, and creating a temporary business and occupation tax surcharge on large companies.
 

ESSB 5167(SHB 1198)

Operating budget

H Conf appt

Robinson

High

 

 

Making 2025-2027 fiscal biennium operating appropriations.
 

SSB 5314(2SHB 1614)

Capital gains tax

Del to Gov

Stanford

High

 

 

Modifying the capital gains tax.
 

SB 5315(HB 1126)

Local tax rate changes

Del to Gov

Gildon

Medium

Support

 

Standardizing notification provisions relating to local tax rate changes and shared taxes administered by the department.
 

ESSB 5390 (HB 1914)

Access to recreation sites

S Passed FP

Stanford

High

 

 

Concerning the discover pass and distributions. (REVISED FOR ENGROSSED: Concerning access to recreation sites or lands.)
 

Tax and revenue laws

Del to Gov

Schoesler

Medium

 

 

Modifying tax and revenue laws in a manner that is not estimated to affect state or local tax collections.
 

2SSB 5786(SHB 2035)

Liquor license fees

H Passed 3rd

Stanford

Medium

 

 

Increasing license, permit, and endorsement fees.
 

Tax preferences

S Passed FP

Salomon

High

 

 

Adopting recommendations from the tax preference performance review process, eliminating obsolete tax preferences, clarifying legislative intent, and addressing changes in constitutional law.
 

Intangible assets tax

S 2nd Reading

Frame

High

 

 

Enacting a tax on stocks, bonds, and other financial intangible assets for the benefit of public schools. THIS MIGHT STILL MOVE IN MUCH SMALLER FORM TO TEST THE GOVERNOR AND THE COURTS.

 

 

ESSB 5813 (HB 2082)

Tax rates/cap. gains, estate

S Passed FP

Wilson

High

 

 

Increasing funding to the education legacy trust account by creating a more progressive rate structure for the capital gains tax and estate tax.
 

ESSB 5814 (HB 2083)

Excise taxes

S Passed FP

Frame

High

Oppose

 

Modernizing the excise taxes on select services and nicotine products and requiring certain large businesses to make a one-time prepayment of state sales tax collection.
 

Investment/LTSS accounts

S Filed Sec/St

Braun

High

Support

 

Amending the Constitution to allow the state to invest moneys from long-term services and supports accounts.
 

Childcare

 

Bill Details

Status

Sponsor

Priority

Position
 

Child care qualifications

Del to Gov

Dent

Medium

 

 

Modifying child care provider qualifications.
 

ESSB 5509(SHB 1212)

Child care center siting

Del to Gov

Alvarado

Medium

 

 

Concerning the siting of child care centers.
 

Energy and Climate Change

 

Bill Details

Status

Sponsor

Priority

Position
 

Clean fuels program

Del to Gov

Fitzgibbon

Medium

Oppose

 

Concerning the clean fuels program.

Accelerates the move to the state's cleaner fuel standard -- potentially increasing the cost of fuel.
 

Climate commitment act

Del to Gov

Fitzgibbon

Medium

Support

 

Amending the climate commitment act by adjusting auction price containment mechanisms and ceiling prices, addressing the department of ecology's authority to amend rules to facilitate linkage with other jurisdictions, and providing for market dynamic analysis.
 

Health Care

 

Bill Details

Status

Sponsor

Priority

Position
 

SHB 1392 (SB 5372)

Medicaid access program

Del to Gov

Macri

Medium

Oppose

 

Creating the medicaid access program.
 

Universal health care

S Filed Sec/St

Hasegawa

High

Oppose

 

Concerning Universal Health Care.
 

Housing Attainability

 

Bill Details

Status

Sponsor

Priority

Position
 

Lot splitting

S Passed 3rd

Barkis

High

Support

 

Increasing housing options through lot splitting.
 

Housing cost task force

S Passed 3rd

Klicker

High

Support

 

Creating a task force on housing cost driver analysis.
 

EHB 1217(SSB 5222)

Residential tenants

H CC rpt rec

Alvarado

High

Oppose

 

Enacts rent control measures for those subject to the residential landlord-tenant act and the manufactured/mobile home landlord-tenant act by limiting rent and fee increases, requiring notice of rent and fee increases, limiting fees and deposits, establishing a landlord resource center and associated services, authorizing tenant lease termination, creating parity between lease types, and providing for attorney general enforcement.  Conference committee limits rent increase to 7% plus CPI or 10%, whichever is lower.
 

Condominium construction

Del to Gov

Taylor

High

 

 

Simplifying condominium construction statutes.
 

Transit-oriented housing dev

Del to Gov

Reed

High

 

 

Promoting transit-oriented housing development.
 

Multiple-unit dwellings/tax

Del to Gov

Ramel

Medium

 

 

Concerning the property tax exemptions for new and rehabilitated multiple-unit dwellings in urban centers.
 

Deed of trust assignment/fee

C 100 L 25

Scott

High

 

 

Eliminating the exemption for assignments or substitutions of previously recorded deeds of trust from the document recording fee and the covenant homeownership program assessment.
 

Project permit definition

C 102 L 25

Duerr

Medium

Support

 

Concerning the definition of project permit and project permit application.
 

Eminent domain purchase back

Del to Gov

Hasegawa

Medium

 

 

Providing owners of real estate taken through eminent domain by school districts, or sold under threat of eminent domain, the opportunity to purchase the real estate back when it is not put to intended public use.
 

E2SSB 5148(HB 1235)

GMA housing element

Del to Gov

Bateman

High

 

 

Ensuring compliance with the housing element requirements of the growth management act.
 

ESSB 5184(HB 1299)

Minimum parking requirements

Del to Gov

Bateman

High

Oppose

 

Concerning minimum parking requirements.
 

ESB 5471 (HB 1840)

Middle housing

Del to Gov

Goehner

High

 

 

Authorizing middle housing in unincorporated growth areas and unincorporated urban growth areas, certain limited areas of more intensive rural development, and fully contained communities.
 

ADU tax exemptions

Del to Gov

Gildon

High

Support

 

Amending the county population threshold for counties that may exempt from taxation the value of accessory dwelling units to incentivize rental to low-income households.
 

Affordable housing dev.

Del to Gov

Cleveland

Medium

 

 

Concerning affordable housing development in counties not closing the gap between estimated existing housing units within the county and existing housing needs.
 

Public Safety

 

Bill Details

Status

Sponsor

Priority

Position
 

Public safety funding

Del to Gov

Entenman

High

Support

 

Improving public safety funding by providing resources to local governments and state and local criminal justice agencies, and authorizing a local option tax.
 

Supporting Small Business

 

Bill Details

Status

Sponsor

Priority

Position
 

Work restrictions/age 16, 17

C 79 L 25

McClintock

Medium

Support

 

Concerning restrictions on the working conditions and hours of sixteen- and seventeen-year olds.
 

E2SHB 1213(SB 5539)

Paid family & medical leave

Del to Gov

Berry

High

Oppose

 

Expanding protections for workers in the state paid family and medical leave program.
 

HB 1275 (SB 5381)

Self-insurer withdrawal

C 57 L 25

Scott

Medium

Oppose

 

Establishing department authority to ensure payment is received from the self-insured employer after a self-insured group or municipal employer has their self-insurer certification withdrawn.
 

SHB 1308 (SB 5345)

Access to personnel records

Del to Gov

Reed

High

Oppose

 

Concerning access to personnel records.
 

Transp. network companies

Del to Gov

Obras

Medium

 

 

Concerning transportation network companies.
 

Isolated employees

C 47 L 25

Obras

Medium

Concerns

 

Concerning workplace standards and requirements applicable to employers of isolated employees.
 

EHB 1747 (SB 5549)

Job applicants and employees

C 71 L 25

Ortiz-Self

Medium

 

 

Expanding protections for applicants and employees under the Washington fair chance act.
 

2SHB 1788(2SSB 5548)

Workers' compensation

Del to Gov

Richards

High

Oppose

 

Concerning workers' compensation benefits.

Amended to remove health care costs from timeloss calculation but left in equity piece that will cost the system $37 million over a five year period. Needs study amendment to start overall look at how timeloss and wages for timelossare calculated and the impact on the funds.
 

Unemp ins/strikes & lockouts

S CC rpt rec

Riccelli

High

Oppose

 

Concerning unemployment insurance benefits for striking or lockout workers. Caps benefit length at 6 weeks – rather than 12 weeks as passed the Senate or 4 weeks as passed the House.  Kept the 2 week waiting period and a provision for employers to buy down any UI rate increases they might see so they tax increases don’t last the full 4 years.
 

Worker leave/hate crimes

Del to Gov

Valdez

Medium

Concerns

 

Expanding access to leave and safety accommodations to include workers who are victims of hate crimes or bias incidents.

Expansion of paid family leave act. "Hate crimes and bias acts"
 

Immigration status coercion

Del to Gov

Hasegawa

Medium

Concerns

 

Protecting employees from coercion in the workplace based on immigration status.

Not sure what this bill is trying to accomplish -- coercion could be very broad -- even with definition in bill.
 

Pregnancy accommodations

Del to Gov

Nobles

Medium

 

 

Expanding pregnancy-related accommodations for all employers. Only impact for construction would be the provisions requiring payment for break or leave time if accommodations not made that can adapt in a way that works during work time. Changes this piece to a wage and hour issue.
 

ESSB 5291(HB 1415)

Long-term services trust

H Spkr Signed

Conway

Medium

 

 

Implementing the recommendations of the long-term services and supports trust commission.
 

SSB 5408 (HB 1831)

Wage and salary disclosures

S Passed FP

King

Medium

Support

 

Allowing for corrections to wage and salary disclosures.
 

Layoffs

S Passed FP

Cleveland

Medium

 

 

Concerning employment loss due to businesses closing or mass layoffs.
 

Transportation

 

Bill Details

Status

Sponsor

Priority

Position
 

County ferry contracts

C 35 L 25

Leavitt

High

 

 

Concerning county ferry maintenance and repair contracts.
 

SHB 1227(ESSB 5161)

Transportation budget

H Rules R

Fey

High

 

 

Making transportation appropriations for the 2025-2027 fiscal biennium.
 

Ferry system salaries

Del to Gov

Fey

High

Support

 

Concerning the salaries of ferry system collective bargaining units.
 

Clean fuels program

Del to Gov

Fitzgibbon

Medium

Oppose

 

Concerning the clean fuels program.

Accelerates the move to the state's cleaner fuel standard -- potentially increasing the cost of fuel.
 

Transp. project permitting

S Pres Signed

Richards

Medium

Support

 

Convening a work group regarding the streamlining of permitting for transportation projects.
 

ESSB 5161(SHB 1227)

Transportation budget

H Conf appt

Liias

High

 

 

Making transportation appropriations for the 2025-2027 fiscal biennium.
 

Toll rate setting process

Del to Gov

Ramos

Medium

 

 

Streamlining the toll rate setting process at the transportation commission.
 

Transportation resources

H Passed 3rd

Liias

High

 

 

Concerning transportation resources.
 

Transportation funds

H Passed 3rd

Liias

High

 

 

Rebalancing statutory fund transfers and revenue dedications for transportation.
 

Workforce Education

 

Bill Details

Status

Sponsor

Priority

Position
 

Dual credit program access

C 104 L 25

Paul

Medium

Support

 

Improving student access to dual credit programs.
 

CTE careers work group

C 61 L 25

Connors

High

 

 

Improving access to career opportunities for students.
 

Partner promise scholarships

Del to Gov

Bergquist

High

Support

 

Encouraging local government partner promise scholarship programs within the opportunity scholarship program.
 

SSB 5253 (SHB 1257)

Special education services

Del to Gov

Cortes

High

Support

 

Extending special education services to students with disabilities until the end of the school year in which the student turns 22.
 

Special education funding

S Passed FP

Pedersen

High

Support

 

Concerning special education funding.
 

2SSB 5358 (HB 1280)

Career & tech. ed./6th grade

C 134 L 25

Braun

Medium

Support

 

Concerning career and technical education in sixth grade.
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