Senate Bills propose significant tax changes and revenue increases in Washington state

The Senate Ways & Means Committee convened on April 18, 2025, to discuss several significant legislative proposals impacting state revenue and expenditures. The meeting focused on various bills, amendments, and their anticipated fiscal implications.

The first item on the agenda was Senate Bill 5,794, which aims to repeal, modify, or clarify certain tax preferences. This bill is projected to increase state revenue by approximately $3 billion over the next four years, with an immediate impact of $960,000 in the 2025-2027 biennium. Several amendments were proposed, including one by Senator Frame that removes the repeal of specific public utility tax deductions and preferential tax rates for various sectors. Other amendments sought to reinstate tax exemptions and deductions for nonprofit organizations and healthcare services. The committee discussed the potential revenue implications of these amendments, with some expected to increase state revenue significantly.

Next, Senate Bill 5,790 was reviewed, which modifies the cost of living adjustment for community and technical college employees. This bill is anticipated to save the state $10 million in the 2025-2027 biennium and $19.7 million over four years. An amendment by Senator Robinson was introduced to add an emergency clause, making the bill effective July 1, 2025.

Senate Bill 5,798, which increases the property tax growth limit and exempts certain levies, was also on the agenda. This bill is estimated to raise state revenues by $780 million over four years. A proposed substitute by Senator Grama aimed to consolidate state levies and adjust property tax relief programs for seniors, potentially altering the revenue landscape.

The committee then addressed Senate Bill 5,393, concerning the closure of Rainier School by June 30, 2027. The proposed substitute outlines a transition plan for current residents and estimates a net savings of $20.5 million over four years. Amendments were discussed regarding the potential transfer of ownership to a third party, which could impact the timeline and financial outcomes of the closure.

Senate Bill 5,785, which authorizes tuition increases for resident undergraduates, was also considered. The bill includes modifications to the Washington College Grant program, with projected savings of $46 million in the 2025-2027 biennium. Multiple proposed substitutes were presented, each altering eligibility and funding structures for the grant program.

Senate Bill 5,807, which eliminates the smart health program for public employees, was noted for its expected annual savings of $7.4 million.

Lastly, Senate Bill 5,814, which extends sales tax to certain services and expands tobacco taxes, is projected to increase state revenue by approximately $4.7 billion over four years, with associated administrative costs.

The meeting concluded with a comprehensive review of the fiscal impacts of each bill and the proposed amendments, setting the stage for further discussions and potential votes in the coming sessions.