By Rachel La Corte / Associated Press
OLYMPIA — Senate Democrats have passed three revenue bills that are part of a budget deal for Washington state that has not yet been made public.
Budget writers in the Democratic-led House and Senate announced Thursday afternoon they had reached a tentative agreement on a new two-year state budget, but that it wouldn’t be made public until details were finalized, likely Saturday.
But late Thursday night, the Senate brought up a tax bill that was part of their original plan, a change to the real estate excise tax that they have reconfigured and say will bring in about $600 million dollars over the next four years.
They passed it on a 26-22 vote after 11 p.m. Lawmakers in Olympia have been criticized for years for holding important votes late at night and not giving people time to review details on key legislation.
“The more we save to the end, the later we go at night, which nobody wants to do,” said Senate Majority Leader Andy Billig, D-Spokane.
Billig said he’d like to explore ways for the Legislature to make the process more efficient, possibly by shaving off time earlier in the session for policy committees and moving the revenue forecast up to earlier in the year.
The real estate excise tax was one of three tax bills passed by the chamber Thursday night.
Currently, all property sellers pay a flat 1.28% rate. Under the bill passed by the Senate Thursday night, the rate is reduced to 1.1% for homes that sell for $500,000 or less.
A new graduated rate applies for homes that sell between $500,000 and $1.5 million, with the new lower rate applying to the first $500,000, and the 1.28% rate applying to the portion that is greater than $500,000 up to $1.5 million. The rate increases to 2.75% for the portion of sales valued between $1.5 million and $3 million, and it rises to 3% for homes where the portion of the selling price is more than $3 million.
Another measure changes the way petroleum companies are taxed in the state. Instead of being taxed based on market price, as they are under current law, the companies would be taxed based on the volume of hazardous substances processed. The Senate also passed a plan to amend the current sales tax break for residents who live in states that don’t have a sales tax, like Oregon. Under the measure, non-residents would be able to request sales tax refunds of more than $25 and would be limited to one refund per year.
In a joint statement announcing the budget deal Thursday, Sen. Christine Rolfes and Rep. Timm Ormsby said they were working with their fiscal teams to finalize details.
The Senate and House had each previously passed their own underlying budget plans but funding bills had been on hold as both chambers worked to negotiate a final plan.
The Senate had originally been seeking more than $500 million in new revenue to fund an underlying $52.2 billion budget, while the House had sought $1.4 billion in new revenue for their $52.8 billion proposal.
The 105-day-legislative session is scheduled to end Sunday. If lawmakers are unable to pass the budget before midnight Sunday, the Legislature will have to go into a special session.
House Majority Pat Sullivan said Friday that nonpartisan staff is working to get the documents published as fast as they can and that the reason the details of the budget haven’t been released yet are because they want to “make sure we have it right.”
He said while he knows there is criticism about the lack of transparency in the frantic final days of session, lawmakers are working quickly to avoid having to go into special session.
“Either we get done on time — and we do it the best we can, making sure people have the information as quickly as possible — or we’re criticized for not getting done on time,” he said.
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