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Evergreen Reporter

Sunday, April 20, 2025

Lawmakers progress on budget and tax issues; new tax package reflects potential budget agreement

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Brad Close President | NFIB Washington

Brad Close President | NFIB Washington

Lawmakers in Olympia have been focusing their efforts on budget and tax issues as the legislative session approaches its conclusion. On April 16, the opposite chamber cut-off was observed, marking a deadline for House and Senate bills to pass each other's chambers. Notably, this year saw the session end by 5 p.m. without any controversial bills being debated past the deadline.

The House employed the NTIB rule to bring forward several bills essential for budget implementation and proposed a new tax package, which hints at a potential budget agreement.

Discussions are actively ongoing regarding the operating and transportation budgets. Lawmakers are negotiating these matters within conference committees, where they hold a majority influence. During these negotiations, there's concern that the committees might propose revisions differing significantly from initially submitted bills.

As both chambers move towards a consensus on the state’s new two-year general operating budget, tax legislation, announced on April 15—coinciding with Tax Day—seems imminent. This legislation involves specific bills impacting small businesses, which include property, B&O, capital gains, and estate taxes. Despite the impending agreement, “no tax bills have passed… no property tax increases, B&O hikes, or gas tax boosts have become law."

Governor Bob Ferguson addressed the press reaffirming his stance against large tax increases while highlighting potential budget cuts from the Trump Administration, though the implications for the developing budget remain ambiguous.

Several priority bills are making progress:

- **PFML mandates (HB 1213)**: This bill mandates job protection and health insurance during Paid Family & Medical Leave, potentially raising costs to nearly $1 billion over six years.

- **Personnel records (HB 1308)**: Inability to access personnel records leads to a private right of action, offering limited administrative remedies.

- **All Payer Claims Database (HB 1382)**: A health care cost transparency measure supported by the NFIB.

- **Clean fuels program standards (HB 1409)**: Increasing the state's clean fuel standards opposes NFIB due to potential fuel price hikes.

- **Right to Repair (HB 1483)**: While it introduces necessary modifications for small businesses, it retains an exemption for Apple devices.

- **Specialty electricians (HB 1533)**: Supports apprentices performing electrical work without affecting their qualifications.

- **Workers’ compensation benefit increase (HB 1788)**: Raises concerns about cost underestimates associated with increasing benefits for single parents.

In coming weeks, lawmakers will continue to address these bills and work on the operating and transportation budgets and related tax packages. The legislature aims to conclude its efforts by April 27, just before the session deadline.

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