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Income tax bill heads to WA governor for signature

USAIncome tax bill heads to WA governor for signature

by Jerry Cornfield, Washington State Standard
March 11, 2026

Democratic state senators in Washington pushed a state income tax across the legislative finish line Wednesday after Republicans’ last-ditch attempt to derail it failed.

On a 27-21 vote, Democrats approved Senate Bill 6346, clearing the way for it to go to Democratic Gov. Bob Ferguson, who is eagerly waiting to sign it.

Passage didn’t occur before the GOP launched a final procedural fight.

Sen. Chris Gildon, R-Puyallup, contended that the effect of certain business-tax-related amendments passed by the House on Tuesday exceeded the scope of the original Senate bill. Thus, he said, it had to be sent back to the House to undo them.

Lt. Gov. Denny Heck, who serves as Senate president, huddled with counsel of the two party caucuses for close to an hour to determine if Gildon was right.

If Gildon had been successful, it could have forced the Legislature into a special session so Democrats could readjust the language. The session is scheduled to end Thursday.

But when Heck returned to the dais, he denied Gildon’s challenge, ruling that the House amendments were in line with changes the Senate made before passing the bill Feb. 16.

From there, one last debate got underway on the legislation to impose a 9.9% tax starting Jan. 1, 2028, on households with an annual income greater than $1 million. Collections of the tax, which is expected to be challenged in court and on the ballot, would begin in 2029. It will generate roughly $3 billion a year when up and running.

As the bill wended its way through the legislative process, it “has gotten better and better. I believe that the House amendments improve the bill,” said Senate Majority Leader Jamie Pedersen, D-Seattle.

A string of Republican senators begged to differ, citing changes they opposed.

For example, they flagged the excising of funding for public defense services in courts around the state and the expansion of eligibility rules for the Working Families Tax Credit that is available to lower-income residents. With the change, it is estimated credits could be available to 810,000 households, up from the current 350,000.

Gildon said it would mean some families with “six-digit” incomes would qualify.

“I don’t believe that’s the type of tax credit and tax reform that is intended to reverse what is called the most regressive tax system,” Gildon said.

Sen. Noel Frame, D-Seattle, the point person on tax policy in her caucus, rebutted Republican senators, insisting the House made “meaningful” changes to assist businesses and families. Among them: adding sales tax exemptions on diapers and over-the-counter drugs, she said.

Senate Minority Leader John Braun, R-Centralia, got the last word on legislation that every Republican in the state Legislature opposed.

“This bill is wrong for our economy, it’s wrong for our families, it’s wrong for our communities, it’s wrong for our state. Let’s not concur,” he said.

Once Heck and House Speaker Laurie Jinkins sign it, the bill will be sent to Ferguson, who will have 20 days to act on it following the end of the session.

Washington State Standard is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Washington State Standard maintains editorial independence. Contact Editor Bill Lucia for questions: info@washingtonstatestandard.com.

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