Senate narrows tax preference to fund wildfire mitigation and raises cannabis license fees

The Washington State Senate on March 11 approved two separate measures targeting revenue and fee structures.

Substitute House Bill 2089: Sponsor Senator Frame said SHB 2089 narrows a business-and-occupation tax preference that had been intended to help community banks so institutions that are not community banks—specifically high-volume mortgage lenders—would no longer qualify. Senator Frame said the revenue is dedicated to the wildfire mitigation fund and framed the change as refocusing the preference. Senator Gildan spoke in opposition, arguing that adding or expanding mortgage-related taxes during a housing affordability crisis is unwise. The roll-call showed 27 ayes, 21 nays and 1 absent; the presiding officer declared the bill passed.

Engrossed House Bill 2681: Senator Robinson described HB 2681 as a "very simple, straightforward bill" that raises the annual fee for licenses for cannabis producers, processors and retailers. Senator Gildan again urged a no vote on fiscal grounds. The roll-call returned 29 ayes and 20 nays and the bill was declared passed.

Both bills were advanced under suspension of rules and passed by constitutional majorities on the Senate floor.