HB 2117, sponsored by Noel Frame (D–Seattle), reauthorizes the tax structure work group with a five-year work plan and expands membership to nine voting members and three nonvoting members. The original tax structure workgroup was authorized in an operating budget proviso (Sec. 101 of SSB 5883) and produced a final report in December 2018. The report made the following recommendations:
- The tax group should be reauthorized, and membership should be expanded;
- It should focus on policy proposals addressing key challenges of state tax code including the regressivity of the tax system, impacts on small and start-up businesses, and impacts of tax exemptions;
- Data models should be developed to inform policy proposals addressing key challenges, such alternatives to major state taxes and the one percent property tax limit; and
- The group should continue direct engagement with taxpayers and other stakeholders.
HB 2117’s tax structure workgroup would be authorized to:
- Update the final report of the work group and investigate other changes to the state tax structure;
- Facilitate a series of public meetings around the state to present the updated report and other findings, collect feedback from taxpayers about the tax structure, and summarize the feedback in a report; and
- Make recommendations to the Legislature for changes to the state tax structure that do not result in an estimated loss in state revenue.
AWC would be a nonvoting member of the work group. The final report is due to the Legislature by December 31, 2024.