Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that establishes a personal income tax for households with an income of over $1 million in Washington.

Highlights:

• Establishes a 9.9% tax on any individual’s receipt of income exceeding $1 million beginning January 1, 2028 (Sec. 201).

• Specifies that 7% of the taxes collected under this chapter will be distributed to the local government public defense funding stabilization account, and the remainder will go to the state general fund for sales and use tax relief (Sec. 202).

• Expands eligibility for the Working Families Tax Credit to include individuals who are at least 18 years of age and who meet other eligibility requirements, effective January 1, 2029 (Sec. 901).

• Increases the business and occupation (B&O) tax credit for small businesses (Sec. 304).

• Increases the B&O tax return filing threshold to $250,000 (Sec. 906).

• Establishes a sales and use tax exemption for grooming and hygiene products (Sec. 903).

• Amends the expiration date of the B&O surcharge on businesses with gross income in excess of $250 million a year to be the end of 2028, instead of 2029 (Sec. 907).

• Repeals sales taxes on certain specified services, which were enacted in 2025 in Senate Bill 5814, beginning January 1, 2030 (Sec. 1001-1004).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that establishes a personal income tax for households with an income of over $1 million in Washington.

Highlights:

• Establishes a 9.9% tax on any individual’s receipt of income exceeding $1 million beginning January 1, 2028 (Sec. 201).

• Specifies that 7% of the taxes collected under this chapter will be distributed to the local government public defense funding stabilization account, and the remainder will go to the state general fund for sales and use tax relief (Sec. 202).

• Expands eligibility for the Working Families Tax Credit to include individuals who are at least 18 years of age and who meet other eligibility requirements, effective January 1, 2029 (Sec. 901).

• Increases the business and occupation (B&O) tax credit for small businesses (Sec. 304).

• Increases the B&O tax return filing threshold to $250,000 (Sec. 906).

• Establishes a sales and use tax exemption for grooming and hygiene products (Sec. 903).

• Amends the expiration date of the B&O surcharge on businesses with gross income in excess of $250 million a year to be the end of 2028, instead of 2029 (Sec. 907).

• Repeals sales taxes on certain specified services, which were enacted in 2025 in Senate Bill 5814, beginning January 1, 2030 (Sec. 1001-1004).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes a personal income tax for households with an income of over $1 million in Washington.

Highlights:

• Establishes a 9.9% tax on any individual’s receipt of income exceeding $1 million beginning January 1, 2028 (Sec. 201).

• Specifies that 7% of the taxes collected under this chapter will be distributed to the local government public defense funding stabilization account, and the remainder will go to the state general fund for sales and use tax relief (Sec. 202).

• Expands eligibility for the Working Families Tax Credit to include individuals who are at least 18 years of age and who meet other eligibility requirements, effective January 1, 2029 (Sec. 901).

• Increases the business and occupation (B&O) tax credit for small businesses (Sec. 304).

• Increases the B&O tax return filing threshold to $250,000 (Sec. 906).

• Establishes a sales and use tax exemption for grooming and hygiene products (Sec. 903).

• Amends the expiration date of the B&O surcharge on businesses with gross income in excess of $250 million a year to be the end of 2028, instead of 2029 (Sec. 907).

• Repeals sales taxes on certain specified services, which were enacted in 2025 in Senate Bill 5814, beginning January 1, 2030 (Sec. 1001-1004).

Full Bill Text