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Olympia wrap-up: waste-to-energy sent to governor; data-center amendment for Spokane withdrawn; ‘millionaires’ tax’ changes could cut local sales receipts
Summary
Spokane County’s legislative liaison said the waste-to-energy bill reached the governor, a proposed Spokane data-center amendment was withdrawn on the floor, and the new income-tax debate removed some sales-tax provisions and did not include dedicated public defense funding — raising questions about local revenue impacts.
Mike Burgess, reporting live from Olympia, told Spokane County commissioners on March 17 that the state legislature finished its session last week and sent several measures that could affect the county to the governor.
Burgess said the waste-to-energy bill “did make it to the governor” and recommended the county consider sending a letter of support while the governor deliberates. He also described an effort he called the “Spokane amendment” — an amendment addressing data-center tax treatment — that was added on the floor but later withdrawn after attorneys concluded it conflicted with the underlying bill’s purpose.
Why it matters: Burgess told commissioners the proposed Spokane amendment would have treated new construction differently than the governor-request bill, which removed sales-tax breaks for equipment remodels. He said the amendment likely complicated the bill’s message and apparently lacked sufficient support inside the majority caucus.
Burgess spent significant time on the high-profile income-tax measure commonly labeled the “millionaires’ tax,” saying it dominated the session and ultimately altered other tax provisions. “When the bill left the senate floor, there was an amendment…that removed a number of different sales tax provisions,” he said, noting earlier changes from last year’s Senate Bill 5814 were partly reversed. Burgess added the final version did not include directed funding for public defense and that the legislature only stated an intent to create a county mitigation fund — language that would still need future appropriation to deliver dollars to local governments.
Commissioners pressed staff about likely fiscal impacts. One commissioner cited a King County estimate of a $50 million annual sales-tax loss and broader regional estimates approaching “close to a half $1,000,000,000” in combined lost local revenue. Burgess cautioned that where mitigation money will come from is unclear and that litigation or ballot measures may follow the session’s end.
What’s next: Burgess offered to follow up on any vetoes and said the governor normally has until April to sign bills; the operating budget is typically the last bill signed. He also offered to help commissioners craft a support letter using previous testimony if the board wished to weigh in on the waste-to-energy bill.
