State revenue up another $231 million - $2 billion more for 2013-15

Good news for state budget writers - today's revenue forecast has further increased projected revenue for the current and next budget by a combined $231 million for a total increase of more than $2 billion for 2013-15. From today's Revenue Forecast . . . READ MORE

State may want to keep those death tax refunds on hand

Lawmakers may have thought they dodged a bullet last week when passing a retroactive death tax "fix" to a state Supreme Court ruling which would have required refunds but with additional litigation pending due to the retroactive nature of the tax increase the state may still end up paying those court ordered refunds. Here is the Washington State Bar Association's testimony about such retroactive tax increases likely being unconstitutional. While saying we don't want to be like the other Washington (D.C.), policy makers appear to have taken a page out of the Congressional playbook by utilizing retroactive tax policy. But even for Congress (which is no stranger to retroactive taxes) making retroactive tax changes apply longer than during the current fiscal year is tempting fate . . . READ MORE

While you were sleeping - Senate passes/Inslee signs retroactive death tax increase

Beating a Friday morning deadline to keep the Department of Revenue from issuing court ordered refunds, the Legislature yesterday approved HB 2075 - a retroactive change to the state's death tax. The new law undoes a unanimous State Supreme Court ruling which required death tax refunds to certain estates. The House approved HB 2075 early Thursday with the Senate voting late last night and the Governor immediately signing the bill into law utilizing an emergency clause. Though responding prospectively to the Court ruling was never in doubt, it is a bit shocking to see the Legislature make retroactive changes to the state's tax law . . . READ MORE

Tax increases for compensation enhancements?

Though various reform bills proposed by the Senate have been pointed to by state Democrats and Governor Inslee as holding up a budget deal, the real sticking point continues to be whether to increase taxes despite the fact state revenues are currently projected to increase by $2 billion for the 2013-15 biennium (and may increase more at next week's Revenue Forecast). The Majority Coalition Caucus in the Senate has gone on record saying they'd agree to some tax increase if the House acts on the reform bills but it is likely Senators would readily agree to a no-new-taxes budget even without the reforms . . . READ MORE

Olympia's Retroactive Tax "Twilight Zone"

Today is the last day of the 1st Special Session for lawmakers to finish work on the 2013-15 budget. So where do we stand? Here are the thoughts of House Majority Leader Rep. Sullivan (D) as quoted in The Olympian: “We are still pretty far apart,” Sullivan said, noting that Gov. Jay Inslee had said last month that the chambers were light years apart. “I would say we are still somewhere out in space.’’ With budget negotiations apparently "Lost in Space" and a 2nd Special Session around the corner, another strange phenomenon is manifesting in Olympia - "The Twilight Zone" of retroactive tax policy . . . READ MORE