Tag Archives: sales tax

Look out for Senate vote on proposed income tax

Feb. 14, 2026

Dear Neighbors,

This year’s 60-day legislative session just passed the halfway mark. The 14 committees in the Senate that consider either policy or budget-related bills are on a break while the 49 members of the Senate debate and vote on legislation that originated in the Senate and came forward from those committees.

Please keep reading for a brief rundown of some of the high-profile bills that either moved through the Senate already or are expected to come before us ahead of the deadline known as the “house of origin” cutoff. That arrives at approximately 5 p.m. Tuesday. I expect the proposed state income tax will be among them.

Legislation related to the budget is exempt from Tuesday’s deadline for voting. We will see it soon enough, however, when the Senate majority proposes its plan to address the $1.5 billion shortfall in the two-year operating budget adopted less than a year ago. I certainly hope it doesn’t involve even more tax increases; either way I’ll focus on the operating budget, and the work I’m doing on the capital budget, in my next report.

income tax hearing

The recent committee hearing on the proposed state income tax, Senate Bill 6346, attracted a capacity crowd to the largest of the Senate hearing rooms. In addition, more than 61,000 people signed in prior to the hearing as opposed to the bill, making it the most unpopular Senate bill on record. Thanks to all of you who took time to register your opinion!

Despite strong opposition, expect Senate vote soon on income tax

The state income-tax proposal from by majority Democrats is not only unlawful and unconstitutional — it’s also very unpopular, because people realize how easily it could be applied universally in our state. I wasn’t surprised at all that a record number of people went online to state their opposition.

Even though this would be the largest tax in state history, at some $3.5 billion annually, the enabling legislation wouldn’t take effect until 2028. For that reason, Senate Bill 6346 is not exempt from this coming Tuesday’s deadline for the Senate to act on Senate bills.

My guess is the income-tax bill will be brought up for vote on Monday. Of the many arguments to make against it, the most compelling is that the bill is misleading to claim this would be a tax on millionaires, no matter what the sponsors say.

SB 6346 is written to impose the tax on everyone, with an easily altered deduction serving as the only protection for Washingtonians with less than $1 million in taxable income.have. Although that deduction is for $1 million, it can be lowered or eliminated in the future with a single, simple-majority vote.

The bill’s prime sponsor basically admitted as much during the Feb. 6 Senate committee hearing, when asked if he believes the tax should be structured to eventually apply to middle-class or working-class families, or permanently limited to “high-income earners.”

His answer made no mention of a permanent limit, and included this instead: “…I suspect that in the future we all want to make sure that our successors will have the flexibility to respond to the challenges that they see in front of them.”

The word “flexibility” means only one thing to me — if it becomes law, a state income tax would eventually come for all of us. I won’t support that, especially when the tax bill doesn’t promise the elimination or significant reduction of any other taxes.

Where’s the priority on affordability?

When this legislative session began several weeks ago, both Republican and Democratic lawmakers talked about the cost of living in our state. Something must have happened, because I can’t figure out what these bills from the majority have to do with making Washington more affordable.

  • Senate Bill 6045 would lead to higher farm-labor costs, which in turn means groceries more expensive. It is on the full Senate’s voting calendar and could come up for a vote anytime between now and the close of business Tuesday.
  • Senate Bill 5973 is the “initiative killer” bill, which would unnecessarily hinder Washingtonians from using their constitutional power of initiative and referendum. It also is awaiting a vote by the full Senate.
  • Senate Bill 5974 would allow an unelected commission to basically fire an elected county sheriff. I believe that authority should belong only to the voters, and they already have the tools to remove an elected official from office. We know because Benton County voters recalled an elected sheriff in 2021. I can only guess at the real reasons behind the bill, because what we were told prior to the vote wasn’t convincing. Even so the bill passed in the Senate on a party-line vote Thursday.
  • Senate Bill 5993 would put a 1% cap on the interest rate that can be applied to medical debt. I understand why the sponsors are pushing such a major change, but it goes too far. If this becomes law it is going to be tough on hospitals, especially in rural Washington, considering all the charity care they already provide.

SB 6247 screenshot

Click here or on the image to view the remarks I made in support of Senate Bill 6247, which is aimed at improving the financial management of our K-12 school districts.

Senate gives unanimous approval to my K-12 education bills

On Thursday the Senate voted 49-0 to pass both of the education bills I filed this session. Each is related to the situation facing the Prescott School District in our 16th Legislative District.

  • Senate Bill 6247 is about creating what amounts to an early-warning system regarding a school district’s finances, so another district doesn’t fall victim to the issues that have put the Prescott district into financial insolvency.
  • Senate Bill 6065 would clarify the policy that allows school districts to make interfund loans in response to specific financial issues. This would help Prescott now but could also benefit other districts in the future.

It was great to learn earlier this week that the Prescott School District’s supplemental EP&O levy was passing easily. As of election night (Tuesday, February 10) the “yes” vote was over 87%.

I am not surprised, not even by the overwhelmingly positive vote. The Prescott community consistently approves school levies, and the voters knew this levy is the most important in the district’s history.

Passing the levy accounts for the first portion of the roughly $1 million in new resources Prescott must identify no later than April 1. These will help create a financial plan capable of convincing the superintendent of public instruction to withdraw his petition to dissolve the district.

The second part is coming from the many months of heroic efforts by the community and the district to raise money, anchored by the sale — also announced this week — of the district’s historic teachers’ cottage.

The third and largest part of the money needed to save Prescott from dissolution will hopefully come from a legislative reappropriation of $640,000. These dollars are unspent funds left from assisting the Marysville School District in 2025. They are contained in the supplemental 2025-27 operating budget submitted by the governor’s office in December.

The tremendous support for the supplemental levy was noticed by the Senate majority’s budget leader. That has me cautiously optimistic that the money for Prescott will be in the Senate supplemental operating budget when it’s made public later this month.

***

I am working to make living in our state more affordable, make our communities safer, uphold our paramount duty to provide for schools, and hold state government accountable. I’ll work with anyone who shares those goals and wants to find solutions.

Please reach out to my office with your thoughts, ideas and concerns on matters of importance to you. I am here to serve and look forward to hearing from you.

Sincerely,

dozier signature

Perry Dozier
State Senator
16th Legislative District

 

EMAIL: Perry.Dozier@leg.wa.gov
OLYMPIA PHONE: (360) 786-7630
OLYMPIA OFFICE: 342 Irving R. Newhouse Building
MAILING ADDRESS: P.O. Box 40416, Olympia, WA 98504

Prescott situation tests state’s duty to provide for education

elected officials reception

The Elected Officials Reception hosted recently by the Home Builders Association of the Tri-Cities and the Tri-City Regional Chamber of Commerce was a great opportunity to connect with a large number of local business and community leaders. This was at the REACH Museum in Richland — and I count 42 people!

Dear Neighbors,

Article IX of Washington’s constitution is clear: providing for the education of our state’s children is the “paramount duty,” or top priority, of state government. But what does that mean when a school district gets itself into deep financial trouble?

My previous report mentioned how I’m keeping close track of the financial issues facing the Prescott School District. That has included meeting with administrators from the Office of the Superintendent of Public Instruction (OSPI) and more recently speaking up at the latest meeting of the Prescott school board.

Because Prescott is considered financially insolvent, the district’s future hangs in part on this 2012 state law. It is what allowed the state superintendent, former Democrat state representative Chris Reykdal, to convene a four-member Financial Oversight Committee specifically to look into Prescott’s situation.

By law this oversight committee will ultimately recommend one of two options to Superintendent Reykdal: Dissolve the district and force Prescott students to attend school elsewhere, or try saving the district from dissolution by placing it under “enhanced financial monitoring.”

There’s a lot I could say about this, as a proud Prescott alum and a member of both the K-12 education committee and the budget committee in our state Senate. For now let’s look at how OSPI has treated another district with financial issues: Marysville, in Snohomish County.

In June 2024, Superintendent Reykdal appointed a Financial Oversight Committee to assist Marysville in getting on a “path forward to financial stability” after the district failed to come up with a balanced budget for the 2023-24 fiscal year.

Little more than two months later, noting the district also had yet to produce a viable budget for the 2024-25 fiscal year, he placed Marysville under enhanced financial monitoring. This included the appointment of a special administrator to “oversee and carry out the financial conditions imposed on the district.”

What struck me was this part of the letter Superintendent Reykdal sent to the district, because of how it contrasts with what’s happening in Prescott:

“After reviewing, and carefully considering, the messages sent to the FOC, and the public comments at school board meetings, it is clear that the community lacks trust and confidence in school district leadership… I have lost confidence that the district has the decision-making tools or current personnel necessary to fix its financial situation on their own… Despite being faced with significant financial challenges, the district has shown it is unwilling and unable to take appropriate steps or accept responsibility for the current situation. After more than a year of OSPI and NWESD partnering with the district’s executive leadership, financial clarity and progress toward long-term stability has not been achieved by MSD leadership. As a result, I am transitioning decision-making through enhanced financial oversight.”

I don’t sense that the Prescott community has lost trust and confidence in PSD leaders. And has Superintendent Reykdal noticed the heroic efforts being made by the district and the community to raise money?

The former Vader School District in southern Lewis County was dissolved nearly 20 years ago largely because the school building had been condemned as unsafe. Failed efforts to pass a construction bond issue put the district in an insurmountable financial situation. That is not the case in Prescott.

The head of the Marysville School Board has blamed that district’s financial situation on the effects of inadequate state funding of schools, declining student enrollment, inflation and a double levy failure. You don’t hear those excuses from Prescott, as the cause of the financial trouble is much simpler and widely known.

To me the best course would be for the Prescott FOC to recommend against dissolving the district, and for going the financial-oversight route. Superintendent Reykdal should agree and give Prescott the same opportunity Marysville received.

And if those aren’t enough reasons, the latest student assessment scores from Prescott are another reason for Olympia to stand with the community, not against it.

While the learning loss resulting from pandemic-related classroom closures is a reality, Prescott is bucking the trend. The share of district students testing at grade level for math in the 2024-25 student assessments is up 9% from pre-pandemic and compares favorably with other districts in the area.

To me, supporting small, successful districts like Prescott is more in line with our constitutional duty to provide for education than dissolving them. I agree with the view expressed in this open letter to OSPI and the Prescott FOC, from someone identified only as Bob:

“We hope you are for us. The paramount work of the State of Washington is education. Prescott is in the education business. It has helped grow and develop hundreds of students into productive members of society. Keep us open! The financial downfall was at the hands of previous staff. None of them are still at Prescott. But those that are are here because they want to see it continue.”

I could not say it better.

As fallout from new taxes continues, Democrats look at more increases

You can’t make this up: School districts in our state are getting blindsided by the new sales-tax increase approved by Democrats this spring.

To be clear, the news here isn’t that districts are now paying sales tax – they already have been on new construction, for instance. It’s how, in their haste to rake in even more money, our colleagues across the aisle apparently didn’t think about how extending the sales tax to even more things would cut into school budgets.

A report in The Seattle Times this week offers more of the story – and if you read it, ignore the speculation from a Democratic state representative that the tax increase (which he supported) might be illegal as it pertains to schools. He’s wrong.

The sales-tax expansion is estimated to take nearly $4 billion from the economy over four years. It was not even the largest part in the state-record $12.2 billion, six-piece package of partisan tax increases adopted this year. That title goes to the hike in Washington’s business-and-occupation tax, at $5.6 billion.

The collection of tax hikes was cited by a prominent Washington distiller recently in announcing its storefronts in Gig Harbor, Tumwater, and Roslyn will close.

“With the largest tax increase in state history now going into effect, and more already being discussed for next year, we determined that the path to profitability and growth for our spirits business in the current environment is not feasible,” the announcement read.

A Mexican restaurant in Dayton recently closed due to the increasing costs of doing business, the owner told the Dayton Chronicle.

The increases coming from Olympia don’t hit employers only. The state Employment Security Department recently used its authority under Washington law to approve a 22% increase in the rate of the “premium” (another name for tax) that funds the state-run Paid Family and Medical Leave program.

Nearly 72% of the tax will hit employees directly, through their paychecks, with the remainder falling on employers.

Then, because they are already anticipating another budget shortfall in 2026, there’s the new tax Senate Democrats are reportedly floating: another version of a state income tax, this time targeted at high-income households. The concept itself isn’t new, just some of the details.

We saw a similar approach in 2010, through Initiative 1098 – which was rejected by Washington voters by a margin of almost 2-to-1. It also showed up in a handful of unsuccessful Democratic legislation, especially from 2012, when the majority’s chronic overspending had put the state into a shortfall (which is what we’re again facing, going into the 2026 session).

It’s frustrating how Democrats here and elsewhere talk about affordability but consistently approve policies that make the cost of living less affordable.

I was proud this year to support the $ave Washington budget proposed by Senate Republicans. It would, as the name implies, have saved the people of our state from cuts to core services while saving them from all of those tax increases.

Our balanced approach also would have done more to insulate the state budget from any funding changes at the federal level. However, the majority Democrats had their own agenda and rejected our plan.

***

I am working to make living in our state more affordable, make our communities safer, uphold our paramount duty to provide for schools, and hold state government accountable. I’ll work with anyone who shares those goals and wants to find solutions.

Please reach out to my office with your thoughts, ideas and concerns on matters of importance to you. I am here to serve and look forward to hearing from you.

Sincerely,

dozier signature

Perry Dozier
State Senator
16th Legislative District

EMAIL: Perry.Dozier@leg.wa.gov
OLYMPIA PHONE: (360) 786-7630
OLYMPIA OFFICE: 342 Irving R. Newhouse Building
MAILING ADDRESS: P.O. Box 40416, Olympia, WA 98504

What the sales-tax increase means for you

Col Vly Ctr for Rec enhanced

I’m grateful that my fellow legislators have repeatedly backed our 16th District delegation’s requests for millions of dollars in capital-budget funding to help transform the old Kennewick General Hospital into the Columbia Valley Center for Recovery. This project is one of the good things happening in our area; hopefully it will continue on schedule, and the center will open about the time I’m coming home from our 2026 session at the Capitol. In the meantime it’s exciting to see all the local financial support coming in; I was recently honored to join Nancy Roach, secretary of the Benton Franklin Recovery Coalition, and others who spoke at an event where a local family’s $1.1 million donation was announced! More details are in this Tri-City Herald report.

Dear Neighbors,

We have just about reached the middle of what legislators call the “interim” between our annual sessions at the state Capitol. In a matter of days we’ll be closer to the start of the 2026 session, which will fall on Jan. 12, than to the end of this year’s session, which was back on April 27.

That’s why I am already working with the experts on the Senate Republican policy staff to sift through a list of ideas — some of which have come from constituents this month — and decide which may make sense as legislation, versus things that are better handled through direct contact with a state agency.

After we identify the viable candidates, the next step is to do the research and draft the language, and as you can imagine, complex pieces of legislation require more time. So even though it’s still summer, it also isn’t too soon for me to be thinking about the 2026 session!

Huge expansion of sales tax
is coming, but details still aren’t known

The sales-tax expansion approved by our state’s majority Democrats in April reminds me of the famous remark made back in 2010 when the Affordable Care Act, or “Obamacare,” was making its way through Congress. You may remember it — the line about how the bill would need to be passed so people could find out what was in it.

As this column from Senate Republican Leader John Braun points out, we should expect the sales-tax increase will mean higher prices for things like cable/streaming channels, and driver’s-education courses.

Unfortunately, the state Department of Revenue is still working to come up with guidance for the 95,000-odd businesses required to collect the tax starting Oct. 1 Therefore, no one can say for sure what it means for Washington consumers.

This is not an increase in the tax rate employers will pay, it’s an increase in the number of “business activities” that will be considered taxable retail sales in the eyes of the state. But whether you call it an increase or an expansion, it’s expected to bring in another $4 billion over the next four years. That’s money you and I will pay, as these service providers are forced to pass down the increased costs of doing business in Washington.

I voted against this and every other tax and fee increase approved by the majority this year. The “$ave Washington” operating budget proposed by Senate Republicans was balanced without any increases and also wouldn’t have cut anyone off of essential services; unfortunately, the majority exaggerated the size of the budget shortfall (caused by its own overspending) and used that as an excuse for passing the largest package of tax hikes in state history.

For those in agriculture, loss of farms is no mystery

From what I’m hearing, wheat growers in our area are through with harvest. I was happy with the yields at my farm, but the prices we’re seeing are terrible, especially compared to just a few years ago.

I’m always having to explain to legislators from urban and suburban districts how farmers are price takers, not price makers. While our operating costs go up — and fuel costs are a prime example — we can’t just raise our prices accordingly, the way other business sectors can.

For that reason I already knew the answer to the question posed in a headline in The Seattle Times recently: 3,700 WA farms shut down in 5 years. Why?

That 5-year period ran through 2022, and many more farms in our state have gone under since then. Still, I appreciate how the report under that headline calls attention to the variety of pressures faced by people in the agricultural sector, and efforts from within the farming community to increase access to mental-health supports.

While I was also glad to see details about economic factors that affect Washington farmers, like labor costs that run 462% higher than the national average, the word “fuel” appears just once in the newspaper report, in the same sentence as fertilizer, seed and farm chemicals.

There’s no mention of how the state Department of Ecology stuck it to agriculture for years by failing to honor the fuel-surcharge exemption promised in the state’s cap-and-tax law (the “Climate Commitment Act”). I was among the leaders of repeated efforts to hold Ecology accountable, but only this year did we finally make some headway against the Olympia Democrats’ resistance.

Speaking of fuel, the average price of diesel in Washington as of a couple days ago was $5.03 per gallon. In Oregon it was $4.47, or about where our state was a year ago. It’s an average of $3.85 per gallon in Idaho.

Farmers and families in our corner of the state are fortunate to have alternatives to the crazy Washington fuel prices. I feel for the growers farther from the Oregon and Idaho borders, like the Wenatchee area or the Skagit area north of Seattle.

And although it’s good for Washingtonians to be aware of what goes into growing their food, no report on the state of farming can be complete without more detail about the effect of government policies.

Children's Center visit

Childcare is an important issue for legislators, and while we may have differences of opinion about how to increase access and control costs, I have to believe any of us would be impressed with what Maria and Veronica are doing at The Children’s Center in Walla Walla. I was particularly taken by how flexible they are in serving families, as that’s a gift for those with unusual work schedules. We need more resources like this, and I appreciate that they invited Rep. Klicker and me to visit!

***

I am working to make living in our state more affordable, make our communities safer, uphold our paramount duty to provide for schools, and hold state government accountable. I’ll work with anyone who shares those goals and wants to find solutions.

Please reach out to my office with your thoughts, ideas and concerns on matters of importance to you. I am here to serve and look forward to hearing from you.

Sincerely,

dozier signature

Perry Dozier
State Senator
16th Legislative District

EMAIL: Perry.Dozier@leg.wa.gov
OLYMPIA PHONE: (360) 786-7630
OLYMPIA OFFICE: 342 Irving R. Newhouse Building
MAILING ADDRESS: P.O. Box 40416, Olympia, WA 98504