Five tax bills lawmakers passed to underpin Washingtons next state budget

Washington lawmakers approved five tax bills intended to generate around $9. 4 billion, addressing a $16 billion budget shortfall over four years. The legislation, mainly initiated by Democrats, modifies taxes on businesses and affluent individuals while disregarding a previously proposed wealth tax. House Bill 2081 is expected to bring in nearly $2. 1 billion for the next budget, impacting about 191,000 taxpayers with increased business and occupation tax rates.

Senate Bill 5814, another key measure, aims to raise $1. 1 billion by expanding sales tax to additional services, affecting an estimated 35,000 firms. Governor Bob Ferguson's future decisions on these bills remain uncertain, following his rejection of a larger $12 billion tax package. The approved measures contribute to the state's two-year $77. 8 billion operating budget but do not address transportation funding.

The tax changes faced opposition from Republicans and some moderate Democrats, highlighting divisions within the legislature. These developments are critical as Washington navigates its fiscal challenges.