Senate Ways and Means advances 'millionaires' tax' after hours of amendment fights

The Senate Ways and Means Committee on Feb. 9 advanced substitute Senate Bill 6,346, a proposal to impose a state tax on individuals earning more than $1,000,000 a year, after extended staff briefing and floor debate. Jeff Mitchell, committee staff, told members the bill would begin collections in fiscal year 2029 and that the four‑year revenue estimate is $2.5 billion with approximately $147 million in four‑year expenditures. "Senate Bill 6,346, this is the bill establishing a tax on individuals earning in excess of $1,000,000," Mitchell said during the staff briefing.

Sponsor Senator Petersen framed the substitute as an administrable proposal that doubles some exemptions and increases targeted distributions. Petersen said the substitute included higher charitable deductions and a small‑business credit designed to protect businesses with under $300,000 in receipts from the new tax.

Debate focused on multiple amendments offered by senators across the chamber. Senator Gildan repeatedly urged changes to implementation timing and administrative oversight; he described one amendment as "a sensible amendment to push it back to a reasonable timeline" citing information technology challenges at the Department of Revenue. Senator Braun argued several times the measure could disadvantage Washington businesses that compete across state lines, saying it risked making them "less competitive" in national markets.

One contested amendment would have exempted diapers from sales tax using proceeds or structural changes; Senate members ordered a roll call and the amendment failed 8–15 with one not voting. During debate on constitutional language and a proposed restriction on referenda, senators clashed over whether the bill precluded a public referendum and whether the state constitution would permit this tax.

After considering the substitute and associated amendments (including proposals to cap the rate at 9.9% via constitutional amendment language and to change charitable deduction rules), the committee voted to recommend the substitute bill be sent to the Rules Committee subject to signatures. The transcript records a voice vote and the chair announced that substitute Senate Bill 6,346 "has received a due pass recommendation to the Rules Committee subject to signatures." The transcript does not record a final recorded tally for the committee's recommendation.

Next steps: the substitute will be transmitted to the Rules Committee and, if it proceeds, would be scheduled for further floor consideration.