WA Supreme Court Ruling Could Kill Income Tax

Could the Washington Supreme Court ruling that struck down voter-approved Initiative 2066 create a new legal problem for Washington's recently enacted income tax? The Washington Supreme Court struck down I-2066 on September 17, ruling that the natural gas initiative violated Washington's constitutional single-subject requirement. I-2066 was approved by Washington voters in 2024. The Washington Supreme Court's 6-3 majority concluded that the initiative contained four constitutionally distinct subjects involving different policies and regulatory effects. The ruling is now generating questions about how the court's interpretation of Washington's single-subject requirement could apply beyond voter initiatives and to legislation passed by the Washington Legislature. Building Industry Association of Washington Vice President Greg Lane argues the decision could have broader consequences because the constitutional single-subject requirement also applies to legislation. Lane says the standard established by the court must be applied consistently to bills passed in Olympia and argues other existing laws could face new scrutiny. Washington Policy Center is taking that argument a step further and asking whether the ruling could create a new constitutional challenge to Washington's recently enacted income tax. Senate Bill 6346 established a 9.9% tax on Washington taxable income and also included several other tax and spending provisions. The legislation expands the Working Families Tax Credit, changes portions of the business and occupation tax, includes sales-tax provisions and directs a portion of income-tax revenue toward early learning. Washington Policy Center argues those different policies could create a single-subject problem under the reasoning the Washington Supreme Court applied to I-2066. The Washington Supreme Court has not ruled that SB 6346 violates the single-subject requirement. The argument represents a new legal theory being advanced by critics of Washington's income tax following the I-2066 decision. The I-2066 ruling is also entering the debate over Initiative 645, Washington's income tax repeal initiative on the November ballot. Washington Republican Party Chair Jim Walsh says he is concerned that the Supreme Court's treatment of I-2066 could establish a precedent that might eventually affect other voter initiatives, including an income tax repeal. The Supreme Court has not indicated how it would rule on I-645 if litigation over that initiative eventually reached the court. Today's Washington in Focus examines the Washington Supreme Court's I-2066 decision, Washington's constitutional single-subject rule, the potential implications for Senate Bill 6346, the state's new 9.9% income tax, Initiative 645 and the broader debate over how the ruling could affect legislation and future voter initiatives. Follow The Center Square for continuing coverage of the Washington Supreme Court, Initiative 2066, Washington's income tax, SB 6346, Initiative 645, Washington taxes, ballot initiatives, state government and Washington politics. Want the next important update by text? Get the Washington state government and policy developments worth your attention sent straight to your phone. Text TCSWA to 206-944-3016 or sign up here: https://joinsubtext.com/c/thecentersq... Msg & data rates may apply. #WashingtonState #IncomeTax #WashingtonSupremeCourt #I2066 #Initiative2066 #I645 #SB6346 #Taxes #WashingtonPolitics #GovernmentAccountability #WashingtonNews #TheCenterSquare #WashingtonInFocus