Bill Library

Essential information on each bill is below. For more details, click on the bill number – e.g., “SB 5000.” The new page will show the progress of the bill, videos of debate, and the link to send a comment to your legislator about the bill.

  • Taxes
Allowing bargaining over matters related to the use of artificial intelligence.
Sponsor: Derek Stanford, D
Co-Sponsor: NA

Senate Bill 5786 is another tax increase. It increases fees for a wide range of liquor licenses, permits, and endorsements. The bill affects nearly every category of alcohol-related business, from small wineries and breweries to restaurants, nightclubs, grocery stores, and even special occasion event hosts. In many cases, fees are raised by 50%, with some licenses—like the spirits importer license and grocery store license—seeing increases from a few hundred dollars to over $2,000.

These fees are “tax happy”. They are excessive, arbitrary, and implemented without proper consultation with the businesses they affect. Instead of being a measured update, this bill represents a blunt financial hit. The hospitality industry, including small craft distilleries, bars, and event organizers, is still recovering from the long-term effects of the COVID-19 pandemic. Imposing steep cost hikes now could put further strain on these businesses. For example, increasing a grocery store liquor license fee from $150 to $2,100 is a massive leap that could deter smaller retailers from participating in the market altogether.

Moreover, this fee hike could lead to higher prices for consumers and discourage new entrants from starting businesses, ultimately stifling innovation and local economic growth. Craft distilleries and small wineries, which contribute to tourism and community identity, may be especially harmed—forced to reduce operations or close due to regulatory cost burdens. SB 5786 is a blanket 50% tax spike that will hurt liveliness, small businesses, and job creation. We need a government that supports—not punishes—local business owners working hard to serve their communities.

  • Taxes
Reducing the state sales and use tax rate.
Sponsor: Deborah Krishnadasan, D
Co-Sponsor: Cortes, Alvarado, Bateman, Dhingra, Frame, Hasegawa, Lovelett, Nobles, Orwall, Pedersen, Ramos, Riccelli, Shewmake, Slatter, Stanford, Trudeau, Valdez, Wellman, Wilson, C.

According to Senate Democrats, SB 5795 is a move toward making Washington’s tax system easier for everyone, especially working families. This bill reduces the retail sales tax rate from 6.5% to 6% starting January 1, 2027. Democratic lawmakers claim that by reducing the state sales tax rate, this bill provides direct, immediate relief to low- and middle-income households who currently pay a disproportionate share of their income in sales and use taxes. Historically, Washington has one of the most regressive tax systems in the country.

Sales tax is applied universally—whether you’re buying groceries, school supplies, clothes, or household goods—and lower-income families feel that impact more deeply. Cutting the tax rate can help working people afford essential needs and better cope with rising costs of housing, child care, and healthcare. It’s a practical, broad-based way to put more money back in people’s pockets without requiring complex tax credits or applications.

It has been said that you “don’t look a gift horse in the mouth”; therefore, we are recommending you register ‘PRO’ on this legislation. However, please be aware that Democrats are using this tax break as a ‘smoke screen’ to distract attention from their proposed budget which includes $20 billion dollars in tax increases. Their budget includes a property tax bill that could allow your current 1% annual cap to increase by 3 to 4.5% a year. This will not only affect homeowners but owners of large rental properties. Those tax increases will, in turn, result in annual rent increases that will likely far outweigh a .5% sales tax break. Democrats are also floating a 6-cents-per-gallon state gas tax that will most certainly impact low- and middle-income households. Finally, critics argue that lowering the sales tax could lead to decreased state revenue, which is crucial for funding essential services like education and public safety. They caution that while the intent is noble, the long-term effects on the state’s budget could be detrimental.

  • Taxes
Enacting an excise tax on large employers on the amount of payroll expenses above the social security wage threshold to fund programs and services to benefit Washingtonians.
Sponsor: Rebecca Saldaña, D
Co-Sponsor: Robinson, Alvarado, Bateman, Frame, Hasegawa, Lovelett, Nobles, Pedersen, Ramos, Trudeau

Senate Bill 5796 is – yet again – another major tax on businesses and those who create quality jobs in our state. The bill is a dangerous expansion of government power and a harmful precedent for Washington’s economy because it imposes a 5% excise tax on large employers’ payroll expenses above the Social Security wage cap. The bill’s sponsor Sen. Rebecca Saldaña (D) points out: “This tax would apply only to large employers with payroll expenses exceeding $7 million annually — about 5,289 businesses statewide.” But while it claims to only impact 17% of businesses, the reality is that it directly targets companies that create high-paying jobs, potentially discouraging investment, growth, and hiring within the state.

The tax is a way for Democrats to “make up” for their reckless spending in order to close the self-inflicted budget deficit they created. Though it promises to fund education, healthcare, and social services, the tax is levied regardless of a company’s profitability, meaning even businesses operating on tight margins but paying competitive wages will be penalized. It also duplicates existing taxes, adding complexity and red tape without solving Washington’s core structural tax issues. What’s worse, the bill includes heavy-handed enforcement measures like property seizures, public liens, business injunctions, and even authorizing the state to garnish third parties. This sets a dangerous precedent for government intrusion into private enterprise.

The bill also introduces a convoluted appeals process, bureaucratic hurdles, and vague language around “willful” non-compliance, leaving employers vulnerable to steep penalties and arbitrary enforcement. While the state’s regressive tax system does need reform, SB 5796 sidesteps real tax equity solutions and instead punishes productivity and success. Washington is already one of the worst states in the nation to run a business, and this bill will make it worse. It will drive innovation and opportunity out of Washington, and along with it, high-quality jobs.

  • Taxes
Enacting a tax on stocks, bonds, and other financial intangible assets for the benefit of public schools.
Sponsor: Noel Frame, D
Co-Sponsor: Dhingra, Alvarado, Bateman, Hasegawa, Lovelett, Nobles, Pedersen, Ramos, Riccelli, Stanford, Trudeau, Valdez, Wellman, Wilson, C.

Of all the taxes Democrats wish to impose upon us, Senate Bill 5797 is considered “the most controversial measure,” reports MyNorthwest.com. It seeks to tax a massive $4 billion out of our economy and put it into the hands of government. It imposes a tax on financial intangible assets, such as stocks and bonds, by mandating a tax rate of $10 for every $1,000 of the “true and fair value” of these assets, but only affects those holding assets valued above a staggering $50 million. While the stated goal is to reduce wealth inequality and bolster school funding, the bill’s approach could have far-reaching negative economic impacts. The tax not only targets a tiny fraction of wealthy individuals, but it also risks penalizing sound financial investments and discouraging capital accumulation. This policy introduces complex valuation methods that could lead to administrative burdens and costly legal disputes over asset assessments. Moreover, the law forces individuals and entities to navigate intricate rules, exemptions, and penalties that may be both confusing and punitive.

This bill is also an invasion of financial privacy. Critically, this bill represents a move towards a more intrusive state role in personal financial affairs, where even well-managed investment portfolios could be subject to heavy taxation. The potential for substantial penalties in cases of valuation understatements may lead to a climate of fear and over-compliance among investors. Instead of encouraging responsible economic behavior, this measure could stifle innovation and risk-taking in the financial sector. It may indeed hurt the creation of high-quality jobs. While the promise of better-funded public schools sounds appealing, it comes at the expense of discouraging investment practices that drive economic growth and job creation. The administrative complexity introduced by the bill could ultimately cost the state more in enforcement than it raises in revenue, thereby undermining the very educational benefits it claims to support. Furthermore, the tax could have unintended ripple effects on Washington’s overall competitiveness by making the state less attractive to high-net-worth individuals and businesses. That means, in short, fewer jobs.

  • Taxes
Concerning property tax reform.
Sponsor: Jamie Pedersen, D
Co-Sponsor: Riccelli, Alvarado, Bateman, Frame, Nobles, Valdez, Wellman

Here we go again: Now the Democrats aim to increase your property tax from 1% to 3% (or more), which may sound small, but may indeed tax many people right out of their own homes. By removing the longstanding 1% annual cap on property tax, the bill increases and replaces it with a formula tied to both inflation and population growth. This change would dramatically accelerate the growth of property taxes across the state, hitting homeowners, landlords, and small businesses alike with escalating tax burdens year after year. While the bill claims to support essential services like education, public safety, and community health, it does so by pushing the cost onto property owners—many of whom are already struggling with rising housing costs.

The bill’s formula for calculating tax increases is vague and overly complex, making it difficult for taxpayers to anticipate or plan for future liabilities. Additionally, local governments could increase their property tax collections significantly if they simply declare a “substantial need,” which could easily be manipulated to justify nearly any expense. This undermines taxpayer protections and accountability. SB 5798 does little to shield middle-income families or renters, who may indirectly bear the cost of higher property taxes through increased rent. In a time of affordability crises across Washington, SB 5798 threatens to make homeownership and renting even more expensive.

This tax is a key feature of a larger package of taxes that will hurt Washington families. Rep. Travis Couture, R-Allyn, notes that the Democrats’ budget proposal would “crush Washington’s working families.” “This proposal includes a devastating set of tax increases — the largest in state history — all so Democrats can continue their record-breaking spending,” Couture said. “If this budget passes, it will drive jobs out of Washington state, price people out of their homes and hurt the working class.”