Senate restores estate-tax rate adjustments; critics warn of $400 million biennial gap

The Washington State Senate on the floor passed engrossed S.B. 6,347, a bill that adjusts the state estate tax. Sponsors moved to adopt technical amendments and advance the bill to third reading; the measure passed on final passage by the senate with a vote the president announced as 38 yea, 11 nay.

Sponsor Sen. Kaufman urged colleagues to support the bill as “a very straightforward bill” that restores estate-tax rates and continues support for the Education Legacy Trust Fund. Kaufman said the change is intended to be administrable and consistent with the Department of Revenue’s recommendations.

Sen. Hasegawa rose to explain a vote against the bill, saying the change represents a step backward on progressivity. Hasegawa traced the history of U.S. estate taxation and argued that raising the exemption level would cut revenue and shift the tax burden, saying, “this is gonna cost us about 400,000,000 of biennium” and expressing concern about how the state will fill that gap.

The chamber adopted two floor amendments (Amendment No. 0698, a technical date change; and Amendment No. 0701, a title modification and limited rollbacks of last year’s language) before taking the final roll call. After the roll call the president declared the bill passed and directed that the bill title be the title of the act.

Next steps: S.B. 6,347 was declared passed by the senate and will proceed through the remaining statutory steps (enrollment and transmittal to the governor) per regular legislative process.