OLYMPIA, WA – The yet-to-be-signed final operating budget passed by majority Democrats on the last day of the Washington legislative session includes tax and fee increases that “cut against the trend in cuts seen in most other states”, according to Jared Walczak, vice president of state projects at the Tax Foundation.

“You have to go back many years to find a state tax increase on the scale of what Washington adopted this year,” said Walczak in a Wednesday interview with The Center Square. “Even among states that have raised taxes, this one stands out for just how large and aggressive the package is.”

Gov. Bob Ferguson has not signed the budget package into law. The legislative session concluded on April 27.

“You have to go back many years to find a state tax increase on the scale of what Washington adopted this year,” Walczak told The Center Square on Wednesday. “Even among states that have raised taxes, this one stands out for just how large and aggressive the package is.”

The five tax bills increase business and occupation taxes, sales taxes, and new surcharges for certain businesses and financial institutions. The tax increases are projected to bring in approximately $9.4 billion over the next four fiscal years.

Washington’s $15.5 billion transportation budget relies on several new income sources, including a fuel tax hike, and a vehicle sales tax increase.

Majority party Democrats contend the tax and fee increases are necessary to keep up with increased costs due to inflation and ensure Washingtonians have access to government services.

Republicans counter that many tax and fee hikes will hurt low- and middle-income residents the most.

“Life will be more expensive in Washington than it is right now,” said Rep. Ed Orcutt, R-Kalama, the ranking Republican member on the House Finance Committee. “The cost to purchase an automobile is going to be more expensive, and then when you get a new set of tires, which we all hope people will do, that will cost more. It’s going to be more expensive at the grocery store with higher fuel prices to get goods to market. This ends up with lower-income people paying a lot more in taxes.”

Orcutt said new taxes on storage units will also hurt the rank-and-file.

“Our military personnel when they’re moving from place to place, or with growing families that just run out of room … they use a storage space to get them through until kids start going off to college, so there’s a whole host of reasons why people of all income levels are using those storage units,” he explained.

Currently, storage units are not taxed, but under the new budget package, operators will pay a business and occupation tax of up to 1.75% per transaction.

There are higher taxes on liquor licenses, marriage licenses and Discover passes to get into state parks.

Sen. Nikki Torres, R-Pasco, who helped craft a budget proposal with Sen. Chris Gildon, R-Puyallup, that did not raise taxes but still funded critical programs and services, told The Center Square that while Democrats repeatedly said their budget would tax the wealthy and big corporations, those hikes all trickle down to the consumer.

“That’s going to be passed on to the people, the taxpayers, because who else is it going to go to, right?” Torres asked. “And the fishing and licensing fees, those are going to be passed on to the people, and it’s everyday hardworking people, who are the ones that are going to be hit hardest and not the wealthy.”

Orcutt criticized a hike in marriage license fees.

“The link on the marriage license is that the money is going to domestic violence. Right, so apparently if you’re getting married, you’re expected to commit acts of domestic violence?” he queried. “People who don’t get married do that, too.”

Democrats said their budgets show restraint and include significant cuts to state agencies and programs.

“I think in the House, our primary message on the budget from beginning to end was that we needed to take a balanced approach,” House Speaker Laurie Jinkins, D-Tacoma, said at a news conference at the end of session.

Rep. Joe Fitzgibbon, D-West Seattle, told The Center Square the budget that passed was filled with “difficult decisions.”

“Whether it’s difficult reductions or difficult revenue, not a single cut or a single tax increase is something that is easy or that doesn’t impact somebody or that we take lightly,” he said. “I really think we did the best we could, given the hand that we were dealt.”

Walczak said B&O tax increases, higher capital gains and estate taxes – that Democrats say are aimed at the wealthy – could backfire.

“Most states have been cutting taxes. Most states are setting out a welcome mat for businesses and individuals, and then Washington, more than any other state, has a new menu of potential tax increases every single year, and this year they ordered most of the menu,” he said. “If you are a business owner looking to invest or expand, Washington became significantly costlier and less competitive under this package, and now you wonder what’s coming next.”