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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(36, 36, 36);">Good afternoon all, </span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(36, 36, 36);">The legislature is working this weekend, and everything is extremely fluid, so I'm sending a general update of last week's activity without specific details,
as everything is in play. I will send a bill report at the end of next week after they Sine Die. Please don't hesitate to contact Carrie or me with any questions about bills or taxes. </span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(36, 36, 36);">The Opposite House floor cutoff on Wednesday came and went quietly, leaving many policy bills dead on the calendar—a disappointing outcome for advocates who
had hoped for progress on their legislation and a win for legislators and lobbyists wishing for the demise of certain proposed policies. Despite the looming deadline, neither the House nor the Senate designated a “5pm bill,” and both chambers adjourned their
sessions promptly at or before 5pm. Meanwhile, members of the Senate Ways and Means Committee quickly transitioned to a 5:30pm scheduled hearing focused on new revenue proposals, underscoring the ongoing discussions about the state's fiscal strategy even as
a major legislative deadline passed.</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); font-weight: 700;">Majority Democrats Propose New Revenue Measures</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);">Democratic lawmakers are exploring several new tax proposals aimed at generating revenue for public services, education, and healthcare. But on Thursday afternoon,
seventeen hours before the $12 billion tax package was set to be voted on in Senate Ways & Means, Governor Bob Ferguson voiced concerns in a press release, calling it "too risky." Ferguson did not however present any level of revenue policy he would sign,
or specific programmatic cuts he would recommend. Here are the key measures Democrats have proposed:</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); font-weight: 700;">Capital Gains and Estate Taxes - SB 5813 (Wilson, D-30) / HB 2082 (Street, D-37)</span></p>
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Adds a 2.9% excise tax on capital gains over $1 million, on top of the current 7% tax applied to gains over $270,000 (adjusted annually for inflation).</p>
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Increases estate tax rates for individuals who pass away after January 1, 2025.</p>
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Raises the estate tax exclusion from $2.1 million to $3 million. Revenue from this bill would go to the Education Legacy Trust Account. </p>
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Passed Senate Ways & Means on 4/18.</p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); background-color: rgb(255, 255, 255); font-weight: 700;">Business and Occupation (B&O) Tax Surcharges - SB 5815 (Saldaña, D-37) / HB 2081 (Fitzgibbon, D-34)</span></p>
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<span style="background-color: rgb(255, 255, 255);">Increases B&O tax rates on sectors such as manufacturing, retail, child care, and gambling.</span></p>
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<span style="background-color: rgb(255, 255, 255);">Imposes a 0.5% surcharge on businesses with state income over $250 million.</span></p>
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<span style="background-color: rgb(255, 255, 255);">Raises rates on existing B&O surcharges. Funds would support public schools, higher education, healthcare, and social services. </span></p>
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<span style="background-color: rgb(255, 255, 255);">Was not considered in Senate Ways & Means on 4/18. Scheduled for executive session in House Finance on 4/19.</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); background-color: rgb(255, 255, 255); font-weight: 700;">Property Tax Cap Adjustment - SB 5812 (Wellman, D-41) / HB 2049 (Bergquist, D-11)</span></p>
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<span style="background-color: rgb(255, 255, 255);">Adjusts the annual 1% cap on property tax increases to allow for growth tied to inflation and population, capped at 3%.</span></p>
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<span style="background-color: rgb(255, 255, 255);">Revenue would support K–12 education, including special education. </span></p>
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<span style="background-color: rgb(255, 255, 255);">Was not considered in Senate Ways & Means on 4/18. Scheduled for executive session in House Finance on 4/19.</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); font-weight: 700;">Sales Tax on Services and Nicotine Products - SB 5814 (Frame, D-36) / HB 2083 (Stonier, D-49)</span></p>
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Expands the state’s sales and use tax to cover services like IT consulting and advertising.</p>
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Includes all nicotine products, whether synthetic or tobacco-derived, under the tobacco products tax.</p>
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Requires a one-time prepayment of state sales tax from businesses with $3 million+ in taxable retail sales in 2026. The revenue would support education, healthcare, social services, and other programs.</p>
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Passed Senate Ways & Means on 4/18.</p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); font-weight: 700;">House Approves UI Benefits for Striking Workers</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);">On Saturday, April 12, the House approved a bill to extend unemployment benefits to striking workers. SB 5041 (Riccelli, D-3), was changed on the House floor
with an amendment by Rep. Reeves (D-30), which reduced the duration of benefits from the Senate’s original 12 weeks to 4 weeks. The bill passed the House on a 52-43 vote, with seven Democrats (Bernbaum, D-24, Entenman, D-47, Reed, D-36, Richards, D-26, Springer,
D-45, Tharinger, D-24, and Walen, D-48) joining Republicans in opposition. The legislation now heads back to the Senate, which must decide whether to accept the House's revisions or challenge them. When the Senate passed the original version last month by
a 28-21 margin, it narrowly defeated a similar proposal to shorten the benefit period to 4 weeks. Supporters argue that the bill would ease financial pressures on workers, helping them endure protracted labor disputes. Critics, however, contend that the policy
might incentivize more strikes. If enacted, Washington would become the third state—after New Jersey and New York—to provide unemployment insurance to striking workers. A comparable measure is also under consideration in Oregon this year.</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); font-weight: 700;">Senate Approves Permit to Purchase Firearms </span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);">On Monday, the Senate passed HB 1163 (Berry, D-36) in a 29-19 strict party-line vote. The Senate action is a significant step toward instituting a permit requirement
for firearm purchases within the state of Washington. Democrats argued the measure is a necessary move to enhance public safety and help prevent gun violence, contending that requiring permits will add an additional layer of accountability and oversight to
firearm transactions. Republican lawmakers have voiced strong opposition to the bill, calling it an unnecessary burden, with some arguing it may make legal gun purchases difficult in certain areas. The bill was amended in the Senate so now must return to the
House. </span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); font-weight: 700;">Recycling Reform Act Advances in House</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);">In the early hours of Tuesday morning, the House passed SB 5284 (Lovelett, D-40), which mandates that producers of specific paper products and packaging materials
must join and financially support a Producer Responsibility Organization (PRO). This organization will be tasked with overseeing the post-consumer management of these covered products, ensuring they are properly collected, sorted, and recycled. In addition
to waste processing, the PRO will also coordinate other recycling-related initiatives aimed at reducing environmental impact and improving the efficiency of the state's materials recovery systems. 8 Democrats joined Republicans in voting against the measure:
Representatives Bronoske, D-28, Fey, D-27, Leavitt, D-28, Morgan, D-29, Reeves, D-30, Richards, D-26, Rule, D-42, Wylie, D-49. The bill was amended and must return to the Senate. If passed, Washington will become the seventh state to adopt laws establishing
Extended Producer Responsibility (EPR) for packaging, joining Maine, Oregon, California, Colorado, Maryland, and Minnesota.</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); font-weight: 700;">New Ballot Measure Proposals from Let’s Go Washington</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);">This week, Let’s Go Washington submitted
</span><span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(17, 85, 204);"><a href="https://www2.sos.wa.gov/elections/initiatives/initiatives.aspx" target="_blank" id="OWAed1644f1-be58-e3f4-b786-0f839c3c1dd7" class="OWAAutoLink" title="https://www2.sos.wa.gov/elections/initiatives/initiatives.aspx" rel="noopener noreferrer" data-outlook-id="8f1c5cad-c24c-4201-be01-935a6ee0d4c0" data-auth="NotApplicable" data-linkindex="0" style="color: rgb(17, 85, 204); text-decoration: none; margin: 0px;">several
additional concepts</a></span><span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);"> to the Secretary of State. </span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);">Beyond the obvious policy implications, ballot measures are powerful political tools and are worthy of attention for several important reasons. First and foremost,
they can be extremely costly for advocates on either side, often many millions of dollars in coordination, media strategy, volunteer mobilization, and legal efforts. In 2024, progressive groups spent tens of millions of dollars to defeat Let’s Go Washington
initiatives. Second, ballot measures have the potential to influence voter turnout. Depending on the issue at stake, they can energize specific segments of the electorate who might not otherwise participate in a given election, particularly in off years like
2025 when other races exist. Finally, in states like Washington, where one party dominates decision-making, ballot measures can be the only avenue through which the political minority, Republicans in this case, can exert influence on major policy decisions. </span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); font-weight: 700;">2025 Legislative Races</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);">While House members and roughly half of the Senate are not up for regular election until 2026, several districts in Washington are seeing heightened political
activity in 2025 due to a 2024 wave of retirements, appointments, and incumbents pursuing other offices. These changes have opened up key legislative seats, sparking competitive races that will help shape the state's political landscape. Below is a breakdown
of the most notable contests that will begin after session (and any potential special session) adjourns:</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);"> </span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); font-weight: 700;">District 48 (Bellevue, Medina, Redmond, Kirkland)</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);">Senator Patty Kuderer (D) successfully ran for Insurance Commissioner in 2024, leaving her Senate seat vacant. Representative Vandana Slatter (D) was appointed
to fill the role, but she must now defend it in the upcoming election. Notably, Slatter faces a primary challenge from fellow Democrat Representative Amy Walen, setting the stage for a contentious intra-party battle. The race is expected to be both high-profile
and high-spending, with business interests aligning behind Walen, while progressive groups are likely throwing their support behind Slatter.</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);"> </span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);">Slatter’s elevation to the Senate opened her House seat, prompting the appointment of Osman Salahuddin (D). Salahuddin, now serving in the House, must run this
year to retain the seat.</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);"> </span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); font-weight: 700;">District 26 (Port Orchard, Gig Harbor, Olalla)</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);">Senator Emily Randall (D) transitioned to the federal level, winning election to Congress in 2024. Her Senate seat was filled by appointment with Deborah Krishnadasen
(D), who now faces a tough race to hold the position. She will be challenged by seasoned door-beller Representative Michelle Caldier (R), setting up one of the most competitive Senate battles in the state. District 26 is a genuine swing district, and both
parties are expected to invest heavily, making this a race to watch.</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);"> </span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); font-weight: 700;">District 34 (West Seattle, White Center, Vashon Island)</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);">With Senator Joe Nguyễn accepting an appointment to lead the state Department of Commerce, his Senate seat became available earlier this year. Representative
Emily Alvarado (D) was appointed to succeed him and will appear on the ballot to secure a full term. Alvarado’s move to the Senate created a vacancy in the House, which was filled by Brianna Thomas (D), a prominent local leader. Thomas will also need to run
this year to retain her seat.</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);"> </span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); font-weight: 700;">District 33 (Burien, SeaTac, Kent, Des Moines)</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);">Following the retirement of longtime Senator Karen Keiser (D) in 2024, Representative Tina Orwall (D) was tapped to fill the vacant Senate seat. Orwall will
need to campaign to keep her new position. Her appointment in turn opened up a House seat, which has been filled by Edwin Obras (D). Obras will also face voters this year to keep the role.</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);"> </span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33); font-weight: 700;">District 41 (Mercer Island, Newcastle, Sammamish, Bellevue)</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(33, 33, 33);">Representative Tana Senn (D) was appointed to lead the Department of Children, Youth & Families, creating a vacancy in the House. The open seat was filled by
Janice Zahn (D) who now must campaign in the 2025 election to retain her position.</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(36, 36, 36); font-weight: 700;">Important Dates:</span></p>
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<span style="font-family: Calibri, Helvetica, sans-serif; font-size: 12pt; color: rgb(36, 36, 36);">Sunday, April 27 - Sine Die</span></p>
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<span style="background-color: rgb(255, 255, 255);">Best regards,</span></div>
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Sam</div>
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