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Yahoo
20-04-2025
- Business
- Yahoo
Tax fight crescendos in Washington Legislature
The Washington state Capitol on April 18, 2025. (Photo by Jacquelyn Jimenez Romero/Washington State Standard) Major pieces of a $12 billion tax package passed the Washington state Senate on Saturday without a clear sign that Gov. Bob Ferguson supports them. Democratic senators used their near supermajority to override Republican opposition, approving bills to expand the capital gains tax, increase tax rates on large corporations and big banks, and begin collecting sales tax on an array of services. Collectively, the legislation would raise around $3.2 billion in the next two-year budget and $5.5 billion over four years, money Democrats are counting on to erase a multibillion-dollar shortfall and enact a balanced budget before the regular session ends next weekend. The most heated debate Saturday centered on Senate Bill 5814, which produces the most dollars — a projected $2.9 billion in the next budget and $4.7 billion over four years. It would affect an estimated 35,000 firms, according to a Department of Revenue fiscal analysis. Meanwhile, the House Finance Committee on Saturday advanced the tax package's other significant components. Those measures — expected to receive floor votes Monday in the House — would permanently increase the state's business tax rate, impose a new sales tax on rented self-storage units, and add a new levy on the sale of electric vehicle credits between automakers. The committee also voted out a bill to lift the cap on annual increases in property tax growth. Democrats plowed ahead on these multiple fronts without clarity on how Ferguson would respond if the bills reached his desk. The first-term governor on Thursday called their $12 billion package 'unsustainable' and 'too risky,' citing unknowns about the economy and the flow of federal funding with the Trump Administration. Ferguson insisted again that a mix of progressive revenue and spending reductions is needed to resolve the budget issue, but stopped short of specifics. He met virtually with Democratic leaders Thursday, but did not cite any specific taxes in the package he dislikes. Senate Majority Leader Jamie Pedersen, D-Seattle, who took part in the meeting, didn't speculate on whether the bills passed Saturday would get signed. 'I can't speak for the governor,' he said. 'This is consistent with what we have talked with him about in terms of our approach on revenue.' When the session began, Democrats forecast the need for new and higher taxes to sustain public services at or near or existing levels. Saturday marked the first time any significant tax measure made it to the floor of either chamber. Senate Bill 5814, which passed 27-22, produces the most dollars, an estimated $2.9 billion in the next budget and $4.7 billion over four years. It applies the retail sales tax to more services, such as temporary staffing, advertising, security and lobbying. Sen. Noel Frame, D-Seattle, the caucus leader on finance legislation, described the bill as making the state's tax code 'more appropriate for the 21st Century.' 'Our taxes fund core public services,' she said. 'That's what this is about.' Sen. Nikki Torres, R-Pasco, assistant budget leader for the Republican caucus, said there is 'nothing modern about this bill.' 'This would be an unprecedented increase in the sales tax,' she said. 'We were told that the wealthy need to pay what they owe but this bill hurts everyone.' Democrats also pushed through Senate Bill 5813 to squeeze more money from the capital gains tax. In addition to the existing 7% tax on gains over $270,000 from the sale or exchange of long-term assets like stocks, bonds and business interests, the bill tacks on another 2.9% for gains exceeding $1 million. It would bring in $282 million in the coming budget and $561 million over four years, a fiscal analysis found. The bill passed 27-21. Senate Bill 5794 advanced on a 26-22 vote. It revises or repeals a number of tax breaks. Republicans tried without success to preserve some, including exempting operators of self-service storage facilities from paying a business and occupation tax on the renting or leasing of individual units. Most storage unit users are not homeowners, they argued. 'This is a tax on renters,' said Senate Minority Leader John Braun, R-Centralia. Pedersen said budget writers 'have scrubbed and scrubbed' and come up with $7 billion in savings through cuts, delays and deferrals. He said bills like those Senate Democrats approved are needed for crucial programs related to health care, housing, child care and schools. Republicans pushed back hard. 'There's no need for any of the tax increases,' said Sen. Chris Gildon, R-Puyallup, who led a GOP effort to craft an alternative budget proposal that doesn't rely on tax hikes. He lambasted a provision that requires businesses with $3 million or more in taxable retail sales next year to make a one-time pre-payment of sales tax to the state. This maneuver would pull more tax revenue into the 2025-27 budget that otherwise would have been due the month after it ends. 'This is completely a budget gimmick that should not be tolerated,' Gildon said. In mid-afternoon, Senate Republicans attempted to pull their budget bill to the floor through a parliamentary move, but failed. 'It doesn't play games and use ghost money,' Gildon said. 'It is the only budget proposal that lives within its means.'
Yahoo
17-04-2025
- Business
- Yahoo
WA Democrats propose new taxes to balance budget as legislative session nears finish line
The Brief Washington Democrats released a new set of tax proposals in an effort to close the state's multi-billion-dollar budget gap. The new revenue options come after Governor Bob Ferguson criticized previous proposals as having "far too much in taxes" and relying on a wealth tax. OLYMPIA, Wash. - Legislative Democrats in Washington state have released a new set of tax proposals as they race to pass a balanced budget by the end of the month. Democratic lawmakers in charge of both the House and Senate unveiled new revenue options back in March to close a projected multi-billion-dollar shortfall. But they had to make some reconsiderations after Governor Bob Ferguson criticized the proposals as having "far too much in taxes" and precariously relying on a wealth tax. Senate budget leader Noel Frame, D-Seattle, said Democrats in both chambers have come up with options that, paired with proposed budget cuts, "follow the same spirit" of the previous tax package. "We are still asking some of the wealthiest individuals in the state to do their part and pay what they owe in taxes," she said. Senate Bill 5815 would increase business taxes on sectors like manufacturing, retail and gambling. It would also increase surcharges on banks with net income of at least $1 billion and advanced computing businesses. A surcharge on businesses earning more than $250 million a year would be in place until the end of 2030. The bill is scheduled for a vote out of the Senate Ways and Means committee on Friday, while companion legislation in the House will get a public hearing on the same day. Also scheduled for a vote Friday, Senate Bill 5813 would increase rates on the state's capital gains tax. Gains of $1 million or less would be taxed at 7.2%, while gains above $1 million would face a 9.9% tax. Additionally, the bill raises estate tax rates with an exclusion amount increased to $3 million dollars and adjusted for inflation. A companion bill in the House has yet to be scheduled for a hearing. Senate Bill 5814 would extend sales taxes to previously exempt computer-related services like IT consulting and training, website design and software development. The bill also expands the definition of tobacco products to include nicotine products, natural or synthetic, and subject them to a tobacco tax. Also included in the legislation is a one-time prepayment of sales tax in June 2027 for businesses with at least $3 million in retail sales. That bill is slated for a committee vote on Friday. Senate Democrats are still proposing the removal of tax exemptions deemed by auditors to be ineffective or obsolete through Senate Bill 5794. The bill is scheduled for a vote out of Ways and Means on Friday. They are also still looking to lift the 1% property tax revenue growth cap to account for population growth and inflation. Senate Bill 5812 does that with a growth limit capped at 3%. While the 3% cap is new in the Senate, they are still looking to expand property tax exemptions for seniors and people with disabilities. Both bills are slated for a committee vote Friday. Frame said the property tax increase is crucial to funding education and public safety. "In the place I grew up, Battle Ground, you're looking at maybe an increase of 16, 17 dollars more per year," she said. "Up in Seattle, where I represent today with a higher median home price, you're maybe looking at a little bit like $25 more a year. So, these are reasonable increases to fund our core public services here in Washington state." According to Frame, the proposals would bring in about $12 billion over the next four years. Governor Ferguson's office did not immediately respond to a request for comment Wednesday about the new proposals. Frame said budget leaders have been in communication with the governor's team about what revenue options are at their disposal. "We're all in conversation about the realities of the tax code that we have today and trying to be in conversation about the modifications that we can make today to make it a little bit better for the working people of Washington state," she said. On the other side of the aisle, Republicans are sharply critical of the Democratic proposals. Senate Republican budget writer Chris Gildon, R-Puyallup, said with the tax plans coming out less than two weeks before the legislature has to adjourn, he is concerned they could head into a special session. "All in all, things in Olympia are a mess right now," Gildon said. Republicans have reiterated their stance against increasing the cap on property tax revenues, arguing it would make renting or buying a home more unaffordable. Gildon called property taxes "one of the most regressive taxes" in the state. "It is incredibly surprising to me that Senate Democrats who rail against regressivity in our tax system continue to propose this very regressive tax," he said. Gildon also argued tax increases on businesses will ultimately be passed down to consumers through higher prices. "Anytime that someone tells you that they want to tax business, what they really mean is they want to tax you, they just don't want you to know that they're taxing you," he said. The Source Information in this story is from Albert James, a television reporter covering state government as part of the Murrow News Fellowship program – a collaborative effort between news outlets statewide and Washington State University. Seattle woman arrested for pit bull attacks: 'Let him do his thing' FEMA denies $34M in funds for WA bomb cyclone relief, gives no explanation WSDOT shuts down 103-year-old bridge in Pierce County, WA Man accused in Seattle hate crime flips off cameras, storms out of courtroom Elephants react to San Diego earthquake, swarm around young Red Robin launching Bottomless Burger Pass for National Burger Month To get the best local news, weather and sports in Seattle for free, sign up for the daily FOX Seattle Newsletter. Download the free FOX LOCAL app for mobile in the Apple App Store or Google Play Store for live Seattle news, top stories, weather updates and more local and national coverage, plus 24/7 streaming coverage from across the nation.
Yahoo
15-04-2025
- Politics
- Yahoo
Rewrite of parental rights law passes Washington House
Tense floor debate in the House on Monday, April 14, 2025 about Senate Bill 5181, the bill regarding parental rights. (Photo by Jacquelyn Jimenez Romero/Washington State Standard) Washington House lawmakers, for nearly five hours on Monday, battled through the latest round of debate in the state Legislature over parental rights. Democrats say the bill they approved is needed to clarify parts of a citizen initiative that the Legislature passed last year and to align it with other state and federal laws. Republicans frame the effort as a strategy to gut the earlier measure, which lays out certain rights for the parents of public school students. The bill passed on a party-line vote, 56-39. Democrats at one point invoked a rule to halt debate on amendments, which sped up proceedings but also blocked Republicans from voicing concerns. 'Not every child in this state or in this country has the benefit of parents who are loving, who are supportive, who are there for them,' said Rep. Sharon Tomiko Santos, D-Seattle, who chairs the House Education Committee. Republicans slammed the bill, at times characterizing it as one of the worst Democrats have put forward this year. 'This bill is creating a wedge, putting a wedge between parents and their children,' said Rep. Stephanie Barnard, R-Pasco. 'I feel like the schools should not operate under the premise that the parents are bad or dangerous, that type of premise, again, creates that wedge.' House approval moves the legislation closer to becoming state law, but because the bill was amended, it must go back to the Senate before it can potentially head to the governor's desk. Initiative 2081 was a citizen initiative that more than 400,000 residents signed onto and that was approved in last year's legislative session. It declared 15 specific rights for the parents and guardians of public school children under the age of 18. Two bills linked to the initiative are currently in play — Senate Bill 5181, which the House approved on Monday and House Bill 1296, which was overhauled last month to deal largely with the rights of students. The Senate approved House Bill 1296 on Friday. Some of the biggest changes Senate Bill 5181 would make to the law passed last year are around parents' access to their children's medical records, including for mental health counseling. It would remove the rights of parents to receive prior notification when medical services are being offered to their child, except where emergency medical treatment is required. The same goes for notifications about when a school has arranged directly or indirectly for medical treatment that results in follow-up care outside normal school hours. Democrats say some of those rights are still included in other state and federal laws but students do have privacy rights when it comes to their health care. For example, a 1985 law gives children 13 years or older the right to mental health treatment without parental consent. The bill also removes language from the existing parental rights law that would make medical and mental health records available to a child's parents. But here again, Democratic lawmakers have suggested that parents should still have access to these types of records under other state laws. 'The medical records that are being referenced are not created in school environments,' said Rep. Monica Stonier, D-Vancouver. 'Educational records are educational records and are governed by public school policy. Health care records are health care records. Those are not created by school personnel.' Similar to the law approved last year, the bill calls for 'immediate notification' of parents if there's an allegation of a crime committed against their child, or if their child is interrogated by police. It also adds other notifications, including when a child has been detained for involvement in criminal activity or if a school shooting occurs. The bill specifies that schools don't have to release records to parents who are under investigation for, or charged with, child abuse or neglect. During Monday's floor action, Republicans introduced 15 amendments, of which two were adopted. These included ones calling for parents to receive a copy of a child's public school records within 10 business days, instead of 45 days, and to publish a notice that identifies medical services made available to students without prior consent of a parent or legal guardian. Republicans blasted Democrats for cutting off debate. Earlier in the session, Democrats changed the House rules so they could do this with the support of a simple majority rather than two-thirds of members. 'We knew this day might come, but to see it unfold during the Parental Rights initiative — backed by nearly half a million voters — is a disgrace, ' Republican Deputy Minority Leader Rep. Chris Corry, R-Yakima, said in a statement. Rep. Jeremie Dufault, R-Selah, said the bill 'led to the censorship of representatives of the people of Washington state who strongly supported the initiative.' Rejected amendments included ones calling for parents to get prior notification when medical services are being offered to their child, to receive medical records, including for mental health counseling, for children under 12, and to remove the emergency clause that would allow the bill to take effect immediately and prevent it from facing a potential voter referendum. Republicans also proposed an amendment to block transgender girls from participating in girls' sports. 'This amendment relies on two erroneous premises, the first that trans girls are not girls, not true, and the second, that boys are inherently better athletes than girls, not true,' said Rep. Sharlett Mena, D-Tacoma, before Democrats rejected the amendment. GOP lawmakers also sought to prohibit pornographic images from instructional materials, but Democrats said certain images may be needed to teach science and health curriculum and voted this down, too. When the Legislature passed the initiative last year, Democrats said that they would revisit the law if it created confusion. 'That's exactly what we're doing, is coming back to provide the clarity that we said needed to be done in order to make sure that the bill that we pass aligns with our current state law,' said Sen. Claire Wilson, D-Auburn, the sponsor of the Senate bill on students' rights.
Yahoo
10-04-2025
- Business
- Yahoo
Washington lawmakers debate raising property taxes to bring in more money
The Brief Lawmakers are negotiating a balanced budget, and Democrats are looking to increase property taxes by removing the 1% revenue growth limit. Senate Bill 5798 aims to adjust property tax revenue growth based on inflation and population changes, with exemptions for seniors and people with disabilities, while House Democrats propose a 3% cap without exemptions. Republicans argue that higher property taxes will hinder home affordability, while Democrats emphasize the need to fund schools and public safety, noting that voter-approved levies are the main driver of tax increases. OLYMPIA, Wash. - As lawmakers continue to craft a balanced two-year budget before the 2025 legislative session wraps up at the end of the month, part of those negotiations has revolved around increasing property tax revenues. "This is the wrong answer for Washington, it's the wrong answer for homeowners, it's the wrong answer for renters," Senate Minority Leader John Braun, R-Centralia, told reporters at a press event around property tax proposals Wednesday. Republicans have come out against many of the tax proposals from Democrats in control of the legislature, especially Senate Bill 5798. By the numbers The legislation would get rid of the 1% revenue growth limit for regular property taxes, and allow that revenue to grow based on a formula that accounts for inflation and population change. The proposal also includes property tax exemptions for seniors and people with disabilities. House Democrats have a similar proposal, without the tax exemption but with revenue growth capped at 3%. Democratic leaders have argued property tax revenues to fund schools and public safety have not kept up with increasing costs. "We need to make sure that we don't have a structural problem in our laws that prevents our government from being successful at its basic functions," said Senate Majority Leader Jamie Pedersen, D-Seattle. Pedersen said his caucus is "very sensitive" to making sure people are not priced out of their homes. He also argued the fixed-rate property taxes from the state, counties and cities covered by the growth limit and proposed increase are a "relatively small" portion of a homeowner's overall tax bill. "The vast majority of what people experience as property tax increases comes from voter-approved levies," he said. The other side But Republicans fear increased property taxes would make it harder for people to buy or rent a home, stay in that home and for housing to be constructed. "They cannot say that they support affordability in our state if they also support regressive taxes that decrease affordability for people all across our state," said Sen. Chris Gildon, R-Puyallup. What they're saying Mason County homeowner Marie Gofigan, invited to speak by Senate Republicans, said she is already struggling with making increased property tax payments because the value of her home is increasing. "After three years of hard work, dipping into my retirement and selling my mother's jewelry, I was finally able to get caught up," she said. "However, now, I need to make the property taxes again due this month. Now, Senate Bill 5798 is being presented and will again put me and others like me on the brink of losing our houses." While Governor Ferguson held a press conference last week criticizing Democratic wealth tax proposals, he would not say much on property taxes and other revenue ideas. "Those are conversations we're going to have, there's a lot of negotiations to go on," he told reporters last Tuesday. "But I'm just not going to get into specific proposals right now." Democratic leaders told reporters they are in ongoing discussions with the governor's office and would be releasing more revenue options that are under consideration within the next week. Albert James is a television reporter covering state government as part of the Murrow News Fellowship program – a collaborative effort between news outlets statewide and Washington State University. The Source Information in this story comes from original reporting by Murrow News Fellow Albert James. Seattle driver plummets off multi-story parking garage, 77-year-old rescued Thousands attend Seattle 'Hands Off!' rally against Trump, Elon Musk Tacoma police shoot, kill carjacking suspect Saturday afternoon Sue Bird named to Naismith Basketball Hall of Fame Trump tariffs live updates: Global markets plunge as countries scramble to respond USPS mail delivery changes begin: Here's what to know To get the best local news, weather and sports in Seattle for free, sign up for the daily FOX Seattle Newsletter. Download the free FOX LOCAL app for mobile in the Apple App Store or Google Play Store for live Seattle news, top stories, weather updates and more local and national coverage, plus 24/7 streaming coverage from across the nation.
Yahoo
23-03-2025
- Politics
- Yahoo
Former Washington House Speaker Frank Chopp dies
Rep. Frank Chopp, who served 30 years in the Legislature and was the state's longest-serving House Speaker from 1999 to 2019. (Legislative Support Services) Longtime Washington Democratic Rep. Frank Chopp, who became one of the state's most powerful House speakers over the two decades he held the leadership role, died Saturday. He was 71. Chopp was first elected to represent Seattle's 43rd Legislative District in 1994 and would go on to become the state's longest-serving speaker of the House. He retired from the Legislature ahead of the current session, after announcing last year he would not seek reelection. 'He was one of a kind,' Senate Majority Leader Jamie Pedersen, D-Seattle, said Saturday night, adding he didn't know if anyone had had as much impact on the state. Chopp moderated the 43rd District town hall on March 15, said Pedersen, who represents the district. Chopp phoned the majority leader two days later to discuss housing items that might be in the budget. 'Absolutely devastating news. R.I.P. Speaker Chopp,' Democratic Lt. Gov. Denny Heck wrote on Facebook. 'You accomplished more in your 71 years than is almost imaginable. Our hearts are so heavy but full of gratitude for all you did for everyone.' Chopp 'was a force in Washington politics,' Gov. Bob Ferguson, a Democrat, posted on social media. 'I had coffee with him just a few weeks ago, and he was as animated and energized as ever talking about solving problems for the people of our state.' J.T. Wilcox, a former Republican lawmaker and House minority leader, said Chopp cared deeply about people who worked hard and 'people who needed a hand up' and that he 'loved and respected' the House of Representatives and honored its process 'even at the expense of his policies.' Former Gov. Jay Inslee posted on social media that Chopp 'was one of the most effective and consequential legislative leaders in the whole nation. He led our march of progress in health and housing for years with unmatched ambition, compassion, and results. His spirit will inspire us.' The 1994 election that brought Chopp to the Legislature also saw his Democratic Party lose more than two dozen seats, going from a near supermajority in the House to a 62-36 minority. He ascended to leader of the House Democratic caucus in the late 1990s while it was still in the minority. He became co-speaker with Republican Clyde Ballard of East Wenatchee in 1999 when there were equal numbers of Democrats and Republicans in the House. Democrats won a special election in Snohomish County in 2001 to gain control of the chamber and installed Chopp as speaker in 2002, a job he kept until stepping aside in 2019. At that time, he said he wanted to 'focus more energy on the issues that matter most and are priorities for the caucus.' His exit opened the door for Rep. Laurie Jinkins, D-Tacoma, to become the first woman and first lesbian to serve as Washington House Speaker. Chopp grew up in Bremerton and graduated from the University of Washington. He served several years as executive director of the Fremont Public Association, now known as Solid Ground, which offers resources such as food banks, housing and employment programs. Chopp announced last March he would not seek re-election. In his 30 years as a lawmaker, he focused heavily on housing and homelessness, working to increase the amount of affordable housing across the state, improve access to homeownership and house people with intellectual and developmental disabilities. He helped lead efforts to set up the state's Housing Trust Fund and its Apple Health and Homes program, which uses Medicaid dollars to fund housing. Chopp also pushed policies to expand behavioral health care facilities, child care access and student financial aid for more Washingtonians. 'I am proud to have played a role in helping people throughout Washington gain access to services and support that help them gain independence and realize their dreams,' he told the Standard last year. 'I do know how to get things done,' he said, adding he was not retiring. 'As people know about me, I am not the retiring type,' he said.