Five tax bills lawmakers passed to underpin Washingtons next state budget

Washington lawmakers passed five tax bills that aim to generate $9. 4 billion to address a $16 billion budget shortfall projected over the next four years. House Bill 2081, the most impactful, is expected to raise nearly $2. 1 billion for the next budget and $5. 6 billion over four years by increasing business and occupation tax rates.

Senate Bill 5814 will expand the retail sales tax to cover services, which is projected to bring in $1. 1 billion for the next budget. Governor Bob Ferguson has expressed doubt about some proposals, having previously rejected a larger $12 billion tax package. The tax measures are crucial for funding the state's $77. 8 billion operating budget, but their approval remains uncertain as Ferguson weighs the risks.

Additionally, local governments are expected to receive an estimated $1. 1 billion from the sales tax increase. The financial implications of these bills are significant, impacting over 191,000 taxpayers. Changes also include a new levy on technology companies that will support higher education funding.