The Final Countdown: Revenue Debates and Justice Wins Before Sine Die
As we enter the final stretch of the 2025 legislative session, April 16 marked the Opposite House Fiscal Cutoff—the last day for most policy bills to pass fiscal committees in their opposite chamber. This key deadline narrowed the field of surviving legislation, especially as budget negotiations heat up ahead of Sine Die (the last day of session) on Sunday, April 27.
But in a week defined by late-night drama and decisive votes, five major justice bills beat the clock and passed just in time, while Senate Democrats unveiled a sweeping $12 billion tax package aimed at closing Washington’s $16 billion budget shortfall. These developments set the tone for the final days of session, where revenue and justice are on the line.
💸 The Senate’s $12 Billion Tax Package: A Pivotal Turn
On April 16, the Senate Ways & Means committee heard a suite of five major tax bills, aimed at raising revenue to fund K–12 education, special education, childcare, climate action, and basic needs. These proposals reflect an urgent moral choice: whether we continue asking the most from those with the least—or if we finally make our wealthiest individuals and corporations pay their fair share.
Key Revenue Bills Introduced:
- SB 5813 – Capital Gains & Estate Tax Changes
- Adds a 2.9% surtax on capital gains over $1M (top rate now 9.9%)
- Increases estate tax exemption to $3M; raises the top rate to 35% for estates over $12M
- SB 5812 – Property Tax for Education
- Increases levy growth from 1% to 3%, boosts local capacity for school funding
- SB 5811 – ZEV Credit Tax
- Targets large automaker profits (e.g., Tesla) from trading surplus EV credits
- Generates $280M over four years, with $80M going to clean vehicle incentives
- SB 5814 – Sales Tax on Services
- Expands sales tax to modern services (IT, staffing, digital), raises $5.5B
- Includes prepayment clause, generating $800M in 2027
- SB 5815 – B&O Tax Overhaul
- Adds 0.5% surcharge on large corporations ($250M+ revenue)
- Increases rates on financial and computing firms, protects nonprofits
What’s Missing: No Wealth Tax, No Payroll Tax - Despite growing public support, this package excludes a wealth tax and a Seattle-style payroll tax—both removed in response to Governor Ferguson’s concerns about potential legal and administrative risks. This decision reflects the political tightrope of budget negotiations.
Faith Action Network (FAN) testified in strong support of SB 5813, emphasizing it is a critical step toward building a more equitable and values-driven budget. Policy Director Kristin Ang highlighted that the bill enhances Washington’s capital gains tax by adding a 9.9% tier on extraordinary profits over $1 million, ensuring the wealthiest contribute more fairly. FAN stressed that budget choices are moral choices, and SB 5813 helps fund essential needs like K-12 education, childcare, food security, and healthcare for vulnerable communities. The testimony also pointed to the public’s clear support for progressive revenue, noting that over 64% of voters rejected I-2109, thereby affirming the capital gains tax. FAN urged lawmakers to honor this mandate and pass SB 5813 to fund what matters most.
Governor’s Response: Governor Bob Ferguson responded to the $12B package by calling it "too risky" amid economic uncertainty and potential federal funding threats. While not opposing specific provisions, his comments created tension with legislative leaders seeking meaningful revenue. Without clear alternatives, Democrats warn that essential programs could face deep cuts.
At FAN, we believe that how we raise and spend public money is a moral choice. This session offers a historic opportunity to shift Washington’s upside-down tax code and ensure a budget rooted in equity, care, and shared responsibility.
We call on lawmakers and the Governor to:
- Finalize a budget that centers human dignity and public good.
- Pass progressive tax reforms.
- Protect vulnerable communities through smart, compassionate investments.
📣 TAKE ACTION
🎯 Contact your legislators and urge them to support a just and equitable state budget.
✅ Ask them to vote YES on the progressive tax bills
✅ Celebrate the passage of key justice bills that reflect our shared values
📅 Sine Die is Sunday, April 27 — Let’s finish strong for justice, equity, and hope.
RENTER JUSTICE RALLY TO FIX HB 1217: Today, advocates and renters from across Washington gathered at the Capitol for the Renter Justice Rally to demand real protections in the final version of HB 1217. While the Senate passed the bill on April 10, they added harmful amendments that would allow rent increases of up to 10% plus inflation (CPI) and exclude renters in single-family homes, leaving thousands unprotected. These changes threaten to fuel displacement, evictions, homelessness, and gentrification. Rally participants called on lawmakers to reject these amendments and pass a final bill that caps rent increases at 7% for all renters, 5% for manufactured homeowners, and includes renters regardless of housing type. With days left before the legislative session ends on April 27, the pressure is on to deliver a bill that truly stabilizes housing and protects communities. | 
