S-2344.3
SENATE BILL 5795
State of Washington
69th Legislature
2025 Regular Session
By Senators Krishnadasan, Cortes, Alvarado, Bateman, Dhingra, Frame, Hasegawa, Lovelett, Nobles, Orwall, Pedersen, Ramos, Riccelli, Shewmake, Slatter, Stanford, Trudeau, Valdez, Wellman, and C. Wilson
Read first time 03/21/25. Referred to Committee on Ways & Means.
AN ACT Relating to reducing the state sales and use tax rate to make progress toward a more fair and balanced tax code for Washington state; amending RCW 82.08.020 ; creating a new section; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. (1) Many Washingtonians do not earn enough annually to keep pace with increasing costs of housing, health care, child care, and other essential expenses. Amidst rising cost-of-living across the state, the regressive nature of Washington's tax code puts an additional strain on households already struggling to meet their basic needs.
(2) The legislature finds that Washington state is heavily reliant on excise taxes, including sales and use taxes, and more progress is needed for the state to have a fair and balanced tax system. Washington's tax system remains the second most regressive in the nation as it requires those with the least to pay the most as a percentage of their income. Low-income Washingtonians pay at least three times more in state and local taxes as a percentage of their income than the state's highest-income households. By lowering the sales tax, this reduction in tax responsibility will help reduce one of the key drivers of regressivity in our tax code, taking a significant step toward reducing the disproportionate impact on low and middle-income households, and promoting economic stability and well-being for all Washingtonians.