Bill > HB1569

This bill seeks to increase transparency and accountability in the state's tax exemption process by creating a comprehensive review and oversight mechanism for discretionary tax expenditures. The bill requires that tax preferences, which currently continue without regular legislative review, be included in a new "discretionary tax expenditure budget" as part of the biennial state budget process. These tax expenditures will now need to be explicitly reauthorized every two years, have a maximum 10-year lifespan, and meet specific criteria for review, including an assessment of their economic impact and alignment with original legislative intent. The legislation aims to bring these tax expenditures into the same level of scrutiny as other state spending, ensuring that they are producing the intended results and not unnecessarily reducing state revenue. Key provisions include mandating detailed reporting by the Department of Revenue, requiring the state budget outlook work group to maintain a public listing of these expenditures, and establishing a process for the legislature to review, modify, or terminate tax preferences that lack clear performance measures or expiration dates. The bill's ultimate goal is to make the tax expenditure process more transparent, accountable, and aligned with the state's broader fiscal and policy objectives.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1569&Year=2025&Initiative=false