House Republicans propose $1 billion in tax relief for working families

Working Families Tax Cut

With the state’s latest revenue forecast projecting a surge of $1.1 billion in unexpected new revenue, House Republican budget lead, Rep. Drew Stokesbary, has introduced a bill to provide $1 billion in tax relief for Washington’s working families. All 40 members of the House Republican Caucus have signed on to the measure.

House Bill 2946 would:

  • Implement $30 car tabs and redirect ⅓ of vehicle sales tax to transportation accounts ($726M)
    • Fully replaces lost state transportation revenue over 10-year period, ensuring no disruption to transportation projects or transit service
  • Exempt diapers, feminine hygiene products and breast pumps from sales tax ($68M)
  • Exempt all food sold at grocery stores from sales tax ($149M)

Despite record revenues and voters repeatedly rejecting higher taxes, the majority party has increased taxes by billions of dollars. Last year, they raised taxes on housing, utilities and transportation, and the first bill the governor signed into law this session was yet another tax increase—this time on health care and other essential services. Washingtonians deserve better.

—Rep. Drew Stokesbary

2020 Supplemental Budget Context

  • Four-year ending fund balance on first day of session: $708 million
  • Maintenance level updates from lower caseloads, etc.: $733 million savings (over four years)
  • ERFC February revenue forecast: $1.14 billion additional revenue (over four years)
  • Total available four-year spending: $2.4 billion

Working Families Tax Cut

All 40 House Republicans have cosponsored a bill providing a billion dollar tax cut to working families across Washington.

House Republicans are intent on delivering $30 car tabs this session. Unfortunately, the majority party has not shown any willingness to uphold the clear will of the voters. House Bill 2946 provides a path forward to implement $30 car tabs without compromising transportation projects, while also offering meaningful sales tax relief on food and many personal necessities.

—Rep. Drew Stokesbary