The Washington State Economic and Revenue Forecast Council recently released its latest Economic and Revenue Forecast on November 19. Overall, it showed continued strength in employment, retail sales, and real estate transactions, which increased revenues $898 billion over the September forecast for 2021-23.

Some forecasts for major taxes were revised, including a reduction in the amount projected for collections from the capital gains tax.

As noted in previous forecasts, economic uncertainty caused by rates of COVID-19 cases and new variants could impact the forecast. In addition, continued disruption of some sectors in the supply chain and the rate of inflation remain potential economic risks. The next revenue forecast will be released in February 2022 just before the Legislature finalizes its work to update the 2021-23 supplemental budget.