May 20, 2021 The Washington State Ledger
Despite record state tax collections the last three legislative sessions, and an influx of federal stimulus funds from the American Rescue Plan Act of 2021, majority Democrats in the Legislature still chose to increase taxes on individuals, families and businesses in Washington state. The 2021-23 operating budget grows state spending by $7 billion, an increase of 13.6% over the 2019-21 budget cycle. State spending has increased by 74% since Gov. Jay Inslee took office in 2013.
2019-21 TOTAL TAX INCREASES
$11,545,000,000
(’21-25 Fiscal Impact)
2021 TAX INCREASES
BILL NO.
TOPIC
’21-25 FISCAL IMPACT
DATA SOURCE
SB 5096
Income Tax on Capital Gains
$1,255,000,000
Summary (page 47)
HB 1277
$100 Surcharge on Certain Recorded Documents
$584,000,000
Fiscal Note
2020 TAX INCREASES
BILL NO.
TOPIC
’21-25 FISCAL IMPACT
DATA SOURCE
SB 6492
Update to Workforce Education B&O Tax
$450,000,000
Fiscal Note
SB 5628
Heavy Equipment†
$42,000,000
Fiscal Note
†This took personal property tax on heavy equipment off the rolls and instead charges a tax at point-of-sale. The property tax will be shifted to everyone else, so this is a net revenue gain to the state.
2019 TAX INCREASES
BILL NO.
TOPIC
’21-25 FISCAL IMPACT
DATA SOURCE
HB 1087
Long-Term Care Payroll Tax*
$3,730,000,000
Fiscal Note
SB 5313
K-12 Max Levy Authority**
$2,976,000,000
Internal analysis
HB 2158
Business & Occupation (B&O) Tax for Workforce Education
$845,000,000
Fiscal Note
SB 5998
Graduated Real Estate Excise Tax
$724,000,000
Fiscal Note
HB 2167
B&O Tax Increase for Financial Institutions
$425,000,000
Fiscal Note
SB 5993
Model Toxics Control Act
$380,000,000
Fiscal Note
SB 5997
Out-of-State Sales Tax
$122,000,000
Fiscal Note
SB 6004
Travel Agents
$12,000,000
Fiscal Note
*This bill assessed a premium for long-term care. The fiscal impact represents Employment Security Department’s assessed premiums for fiscal years ’22-25.
**This bill did not directly raise taxes but allowed local school districts to raise additional property taxes.
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