SB 5769, sponsored by Sen. Lynda Wilson (R–Vancouver), would reform the state tax system to reduce state taxes. It would provide a homestead property tax exemption of the first $250,000 of the value of a residence and lower the state property tax by the amount of the property tax exemption. The bill would also eliminate the state’s B&O tax rate on manufacturing, repeal the capital gains tax, and repeal the WA Cares Fund, the state’s long-term care program and wage tax. (See HR & labor relations for more information on proposed changes to the WA Cares Fund.)

This proposal does not originate from the state Tax Structure Work Group, which has been meeting the last couple of years and is expected to make recommendations about potential reforms to the state’s tax structure by the end of 2022.

Date to remember

SB 5769 is set for public hearing in the Senate Business, Financial Services & Trade Committee on Tuesday, January 25 at 8 am.