Washington millionaires tax signed into law; repeal bid rejected as fallout deepens
Key Questions
What is Washington's new millionaires tax?
Governor Ferguson signed SB6346 into law on March 30, imposing a 9.9% tax on income over $1 million starting in the 2028/29 tax year. The tax aims to address state revenue needs amid ongoing debates.
When does the millionaires tax take effect?
The tax will apply to incomes over $1 million beginning with the 2028/29 tax year. Existing noncompete agreements are voided under HB1155.
What legal challenges are facing the millionaires tax?
The Secretary of State rejected a referendum petition, but the Let's Go Washington lawsuit has advanced to the Washington Supreme Court. Former Supreme Court Justice Phil Talmadge, a Democrat, joined the legal effort against the income tax.
How is the housing market performing in Washington?
Housing inventory rose 12% year-over-year in March, but sales remained flat amid mortgage rates over 6% and tech layoffs. Seattle sees domestic population loss offset by international inflows, keeping prices buoyed.
What is causing Washington's affordability crisis?
A new report warns the crisis is accelerating with rising costs for household items, groceries, and gas. Middle-class businesses face squeezes leading to closures, as noted by Gee, amid K-shaped exodus patterns.
How are businesses reacting to the new tax?
Eastside Democrats show infighting signaling tax backlash, and Gee warns of middle-class business squeezes and closures in Seattle. Diners are disappearing while luxury sectors like yachts boom.
What housing policies is Mayor Wilson proposing?
Mayor Katie Wilson advocates for taller, denser housing development faster, including upzoning in West Seattle and acceleration near transit. This responds to the affordability crisis.
What other actions has the WA AG taken?
Washington AG is suing prediction market platforms Kalshi and Robinhood. Ferguson vetoed retail theft measures, focusing on other priorities.
Ferguson signs SB6346 3/30 (9.9% on $1M+ from 2028/29); HB1155 noncompete ban voids existing; SOS rejects referendum/LGW lawsuit advances to WA Sup Ct; WA AG sues Kalshi/Robinhood; affordability crisis accelerates with housing inventory +12% YoY Mar, sales flat amid 6%+ rates/tech layoffs/pop loss; Seattle loses domestics but int'l inflows buoy prices; Eastside Dem infighting signals tax backlash; Gee warns middle-class biz squeeze (closures); Wilson taller/denser housing; K-shaped exodus.