Bill > SB5795

This bill aims to reduce Washington state's sales and use tax rate from 6.5% to 6% in order to address the state's regressive tax system, which currently places a disproportionate financial burden on low and middle-income households. The bill highlights that Washington has the second most regressive tax system in the nation, with low-income residents paying at least three times more in state and local taxes as a percentage of their income compared to high-income households. By lowering the sales tax rate, the legislation seeks to provide some relief to those most economically vulnerable and take a significant step towards creating a more balanced and equitable tax structure. The tax reduction will apply to various retail sales, including tangible personal property, digital goods, services, and extended warranties. The bill includes a delayed implementation date of January 1, 2027, allowing time for state agencies and businesses to prepare for the tax rate change. The underlying motivation is to ease the economic strain on Washingtonians struggling with rising costs of housing, healthcare, child care, and other essential expenses.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5795&Year=2025&Initiative=false