Largest State Tax Increase Passed by Legislature - What's Next?

OneRedmond has been working hard to educate the people in our community about the massive state tax increase that has been on the table in this year's legislative session. The budget that currently is on the Governor's desk contains a budget that includes the largest revenue increase in Washington State's history. Not including the revenues from existing taxes, this budget has a 9% year-over-year growth. There also seems to be an intentional shift from a Business & Occupation tax revenue model to sales tax revenue model, which some fear brings us further into the regressive tax model that has long-been a vocal concern of our residents. 

Also passed this year is the "Recycling Reform Act" that requires the manufacturers and providers of recyclable materials — plastics, cardboard, glass and some metals — to pay for their environmental impact. The companies would be required to form a statewide nonprofit entity called a “Producer Responsibility Organization,” which will assess annual payments from members based on the amount of recyclable materials each produces. The organization will then reimburse recycling pickup companies and local governments starting in 2030, with the idea that the companies and governments will pass the savings to their customers. Some say these cost increases will likely be passed along to the small businesses that use these products.

What's Next? 

Governor Ferguson stated that he would look at this budget line-by-line. He does have a partial veto ability, where he can veto sections of the bill, but not line items. If these vetos affect the overall budget substantially, there would be a special session to try and balance the budget. We will need to wait and see what happens next.

OneRedmond is hosting the 7th Annual OneEastside Economic Outlook Breakfast on May 21st. This is an excellent opportunity to learn more about how this affects your business. Register Here.