Dear friends & neighbors,
The session continues to march on. We’ve just hit the penultimate milestone before Sine Die, Opposite House Cutoff. This means that if a House bill did not pass the Senate, it won’t become law and vice versa. This part of session involves lots of negotiations and back and forth between the two chambers, so I wanted to fill you in on some of the formalities of these processes. Concurrence happens when a bill is amended in the opposite chamber. The bill then returns to its chamber of origin and the new version is debated and either passes or is subjected to a Conference Committee. Conference Committees occur when a bill has passed both chambers but there are differing positions on one or more amendments. A committee is then appointed to discuss the differing opinions. Be sure to follow along these last weeks of session to see what bills pass and the status of our three budgets. This year it is likely that our budgets will be finalized in a Conference Committee as we have not come to unanimous consent on how to address the current financial situation.
_____
The need for progressive revenue
Washington no longer has the most regressive tax code in the country. We’re now 49 out of 50 – only Florida is ranked worse. Frankly, I think that’s embarrassing. It’s also a big reason why we find ourselves facing down such a huge deficit. If we’re going to continue to provide the services that make this a great place to live, we’re going to have to make some serious changes to our current revenue collection system.
We currently have three main proposals to make the necessary changes. They are:
- The FIT Tax: The Financial Intangible Assets Tax applies to assets like stocks, bonds, and mutual funds, with the first $50 million of assets exempt. Around 4,300 wealthy Washingtonians would be impacted, generating around $2 billion per year. This money would go to an Education Legacy Trust Account to support Washington families and fund investments in K-12 schools.
- The B&O Tax: A 1% Business & Occupation tax on businesses taxable income levels above $250 million. This would apply to around 400 of the wealthiest corporations in Washington. It also increases the surcharge on certain financial institutions from 1.2% to 1.9%, impacting roughly 200 institutions each with a net income of $1 billion or more. If it passes, this policy will bring in nearly $2 billion in state revenue that will shield essential public services from economic downturns and political uncertainty, creating a more stable and sustainable financial future for the state.
- The property tax change: This policy adjustment allows for property tax revenue growth to increase based on inflation and population changes, not to exceed 3 percent. A common misconception is that this will triple property taxes – in reality, if someone is paying $1 now, this policy would make the new price $1.03 (not $3). This could increase funding for state investment in K-12 schools by as much $150 million in fiscal year 2027.
In addition to those proposals my HB 2073 was just heard by the appropriations committee. This bill would impose fees on non-profit insurance providers when they exceed their required cash reserve. These fees would then be used to fund healthcare premium assistance for those in need.
_____
Plans for the interim
While the Washington Legislature may only be in session part-time, I can assure that, no matter what, being a legislator is always a full-time job. That’s why I wanted to take the time to give you an idea of what my first interim will look like as your representative. First, I will be working on bills I sponsored that didn’t make it the governor’s desk. This means meeting with stakeholders and hammering out the details so the legislation gets to a place where it can pass. Notably, I will be working on my HB 1630 so we can develop a system for monitoring methane emissions on cattle farms and feed lots. This is necessary so we can make evidence-based policy that does not create additional burdens for farmers.
_____
As always, it’s a pleasure serving you here in Olympia. Please don’t hesitate to reach out, my door is always open.
In service,
Lisa Parshley
State Representative, 22nd District