issue area reports | budget and taxation
HB 1004 personal property tax exemption increases
Failed / AWB supported sponsor: Rep. Mari Leavitt, D-University Place
The Legislature considered but ultimately did not pass a proposal to expand the personal property tax exemption for small businesses. The bill would have increased the exemption from $ 15,000 to $ 50,000 in assessed value and allowed all business entities – not just sole proprietors – to qualify. It also included accountability measures requiring businesses to attest they were claiming only one exemption statewide and that their taxable property’ s replacement cost was below $ 50,000. While the proposal aimed to reduce tax burdens and simplify compliance for small businesses, it did not advance this session.
SB 5797 wealth tax
Failed / AWB opposed sponsor: Sen. Noel Frame, D-Seattle
Senate Bill 5797 would have imposed a new tax on financial intangible assets held by wealthy individuals. The bill proposed a $ 5 tax for every $ 1,000 in stocks, bonds, mutual funds, and exchanged-traded funds for Washington residents with more than $ 50 million in such assets. Retirement accounts and nonfinancial intangibles were exempt. While the bill passed the Senate on the last day of session, it was not heard on the House floor. Critics warned the policy would trigger lawsuits and undermine the state’ s competitiveness.
HB 1517 wireless device tax
Failed / AWB opposed sponsor: Rep. Mia Gregerson, D-SeaTac
This bill would have levied a $ 2 tax on wireless devices with a selling price of more than $ 250, increasing costs for consumers to buy phones, computers, tablets, smart refrigerators, gaming consoles and many other devices. The revenue from this tax would have funded a new digital equity program. While the idea is well-intended, AWB believed it was not the right time to establish a new program projected to require $ 628 million over the next five years.
Rep. Ed Orcutt, R-Kalama, talks with Rep. April Berg, D-Mill Creek. Orcutt is ranking minority member and Berg is chair of the House Finance Committee.
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