Evergreen Reporter

Last week, the Washington State House and Senate Democrats unveiled their revenue plans for the 2025-27 operating budget. The proposals include property tax increases and a new tax on intangible financial assets, also known as a wealth tax.

The House proposal suggests a 1% business and occupation (B&O) surcharge on companies with over $250 million in annual gross receipts and raises the surcharge on financial institutions with net revenues exceeding $1 billion from 1.2% to 1.9%. Meanwhile, the Senate has proposed a Seattle JumpStart-style tax targeting businesses with high-wage employees, requiring a 5% tax from employers with annual payrolls over $7 million for employees earning above the current Social Security cap of $174,100.

The National Federation of Independent Business (NFIB) opposes both HB 2049 and SB 5798, which relate to property tax. "In meetings with Senate revenue leadership, we pointed out that commercial and industrial properties tend to have higher assessed values than residential, so pay a disproportionately higher portion of property taxes," an NFIB statement reads.

Public hearings on these tax bills are scheduled, with the Senate Ways & Means Committee meeting on March 31 and the House Finance Committee on April 3.

NFIB also opposes proposed gas tax increases outlined in transportation funding proposals and has stated its stance on several other legislative matters. One notable bill is HB 1213, which concerns job protection and health benefits under the Paid Family & Medical Leave Program. NFIB argues that the bill, which currently advances, comes with a $1 billion price tag over six years and might require legislative intervention to manage the statutory payroll-tax cap.

In addition, NFIB expressed concerns about HB 1430, which mandates equal pay rates for advanced practice registered nurses (APRNs) and physician assistants as doctors, citing potential implications for health insurance rates.

HB 1589, aiming to allow negotiation of payment rates for certain providers with health insurers, has not progressed. Moreover, NFIB supports HB 1483, the Right to Repair bill, and aligns with SB 5408, addressing wage and salary disclosure corrections.

Finally, budget hearings took place throughout the week, with the Senate and House set to continue working on their respective budget bills.