House Finance Committee advances several tax and revenue measures, including estate-tax changes and new tobacco levy

The House Finance Committee on an unspecified date voted to report three engrossed substitute Senate bills out of committee with due-pass recommendations, advancing proposals that would change exemptions in the state tax code, alter estate-tax rules and add a levy on certain tobacco products.

Committee members approved and rejected several amendments during a lengthy markup, and the panel recorded roll-call votes on each bill. Vice Chair Street moved the motions to report the bills out of committee; staff announced final tallies after roll calls.

The measures and committee action address a range of tax issues: retention or repeal of business tax exemptions (including for precious-metals dealers, credit unions and self-storage), adjustments to estate-tax rules and effective dates, and a new tax on tobacco and vaping products. Representative Orcutt urged retention of some exemptions, saying the exemptions preserve financial institutions in smaller communities: "I think that this exemption should be maintained," Orcutt said during debate on mergers involving state-chartered credit unions. Representative Wallen argued against expanding exemptions, noting broad impacts on state services and saying, "When we have players in the business community that are exempt from taxation, it creates ... a greater tax burden on the rest of the people in the middle." Representative Chase argued to keep the precious-metals exemption, saying the exemption protects small collectors and local coin dealers.

On estate-tax changes, Representative Parsley (transcribed as "Partially") offered an amendment moving the bill's effective date so the change would be prospective rather than retroactive; the committee adopted that amendment. Parsley argued, "I don't think it's fair to retroactively assess decedents on an estate tax when that was not the law of the land at the point that they died." Representative Abel unsuccessfully proposed removing the bill's emergency clause so implementation would take effect Jan. 1, 2026; that amendment failed.

A separate proposal to add a new levy on tobacco and vaping products was amended into one of the bills and adopted by the committee. Representative Parsley described the public-health rationale and fiscal context for the measure and said she would work with stakeholders on program design and use of revenue. "Washington spends over $3,200,000,000 a year in health care because of smoking-related diseases," she said while urging support for the amendment.

Votes at a glance

- Engrossed Substitute Senate Bill 5794 (transcribed variously in the record as 5,794/594): Motion to report out of committee with a due-pass as amended recommendation — Adopted. Roll call as announced by staff: 10 ayes, 5 nays; staff announced the result as "reported out of committee with a due pass as amended recommendation." (Transcript contains multiple references to bill numbering; the record shows the chair and staff correcting the script during the proceeding.)

- Engrossed Substitute Senate Bill 5813: Motion to report out of committee with a due-pass as amended recommendation — Adopted. Roll call as announced: 10 ayes, 5 nays.

- Engrossed Substitute Senate Bill 5814: Motion to report out of committee with a due-pass as amended recommendation — Adopted. Roll call as announced: 8 ayes, 7 nays.

Committee members debated a long list of amendments. Several amendments were withdrawn by their sponsors during the hearing; others were adopted, including the Prospective effective-date amendment for the estate-tax provision and the tobacco-levy amendment. Multiple members voiced concern about the fiscal effect of repealing exemptions and the potential impact on small businesses, community banks and consumers.

The committee chair and vice chair closed the session with thank-yous to staff and committee members and said further work would continue as the bills proceed through the legislative process. "This bill needs some work," the chair said, adding that committee staff and members would continue stakeholder conversations as the legislation moves forward.

Ending

The committee recorded its votes and reported the bills to the next stage; members said additional changes are expected as the measures proceed through the legislative process. The transcript does not record final floor actions or implementation details beyond the committee recommendations.