POLITICS

Washington Governor Signs Millionaires' Tax Amid Legal Challenges

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Olympia — Gov. Bob Ferguson signed Senate Bill 6346 on March 30, enacting a 9.9% income tax on households earning more than $1 million; the law schedules collections to begin in 2029 and is projected to raise roughly $3 billion annually from approximately 21,000 filers. The signing prompted immediate legal and political responses this week: the Citizen Action Defense Fund announced litigation citing a 1933 state precedent, opponents are organizing a November ballot referendum, and officials say the revenue will fund schools and targeted tax relief for lower-income residents and small businesses.

Prepared by Lauren Mitchell and reviewed by editorial team.

Timeline of Events

1933: Washington Supreme Court invalidates a voter-approved income tax, setting legal precedent.
March 30: Gov. Bob Ferguson signs the 9.9% 'millionaires' tax' into law in Olympia.
Immediately following signing: Citizen Action Defense Fund announces plans to sue; Rob McKenna to lead litigation.
Weeks after signing: Opponents mobilize a ballot referendum effort aimed at November.
2029: Scheduled start of tax collections, projected to generate roughly $3 billion annually.

Why This Matters to You

This new tax law could affect your wallet. If you're part of the 21,000 households earning over $1 million, expect a 9.9% income tax from 2029. If you're lower-income or a small business owner, you might see some tax relief or better-funded schools. Keep an eye on the November ballot and any court rulings.

The Bottom Line

Washington's millionaires' tax is a big deal, but it's not a done deal. Legal challenges and a potential November referendum could change things. Worth forwarding if you know someone in the Evergreen State.

Who Benefited

Washington state government and recipients of the new spending — including public schools, lower-income households receiving tax credits, and small businesses eligible for specific relief — stand to benefit from the projected approximately $3 billion in annual revenue once collections begin in 2029.