Washington initiative launched to repeal high-earner income tax law

OLYMPIA, WA – Let’s Go Washington began gathering signatures Tuesday for an initiative to repeal the state’s new income tax on high earners, the start to what could be a blockbuster ballot battle this fall.

“We don’t care how you define it, income tax is illegal in this state. And the voters in the state have voted numerous times to ban an income tax,” Brian Heywood, the founder and chief financier of the conservative political committee, said at a morning news conference.

Qualifying won’t be easy. The group must turn in 308,911 valid signatures of registered voters by July 2 — a time span of 51 days. State election officials suggest submitting at least 390,000 signatures to account for invalid ones.

“We are extremely confident that we’ll be able to do this,” Heywood said, noting the group gathered more signatures in less time to get an initiative concerning natural gas on the ballot two years ago.

Chantell Mellott of North Bend filed the measure, IP26-645, on April 20. The state attorney general’s office issued a ballot title May 4 that was not challenged in the ensuing five-day appeal period.

The measure takes aim at Senate Bill 6346, the new law that imposes a 9.9% levy on household wage income above $1 million starting in 2028. Collections would begin in 2029 and generate around $3 billion a year from an estimated 21,000 filers.

The initiative, if passed, would repeal that levy on high earners. It also would prohibit state and local governments from passing any tax on individual income, regardless of source. And it would chisel into state law a definition of income as “any gain or benefit measured in money derived from an individual’s capital, labor, property, or other source.”

But, in a twist, the measure would retain provisions in the controversial law to expand a tax credit program for low-income families, provide tax relief for more businesses, and erase sales tax on diapers, personal hygiene products and over-the-counter drugs.

It also keeps in place elimination of the new sales tax on services in 2029. However, it would erase language pledging 5% of tax collections each year to the Fair Start for Kids account that supports early learning programs.

“We’re grateful that the Legislature was able to reduce some taxes on things that they’ve already been penalizing people on,” Heywood said. “So we’re not repealing any of those things.”

Let’s Go Washington tried to pursue a referendum on the income tax, but was rebuffed by the Secretary of State Steve Hobbs’ office. The Supreme Court last week sided with Hobbs, saying a so-called necessity clause in the law shielded it from a referendum. A referendum would’ve required half as many signatures as an initiative to qualify for the ballot.

This measure, if it qualifies, would join two other initiatives sponsored by Let’s Go Washington that will appear atop ballots statewide in November. One concerns parental rights for public school students and the other participation of transgender girls competing in girls’ school sports.

This is a developing story.

Washington State Standard is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Washington State Standard maintains editorial independence. Contact Editor Bill Lucia for questions: info@washingtonstatestandard.com.

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