Dear friends and neighbors, 

I am proud of what we’ve accomplished together this session for families and workers. Here are a few bills the Legislature has passed and sent to the governor for his signature: 

Millionaires Tax  

We took a historic step forward in making our tax code fairer by passing the Millionaires Tax (SB 6346). The 9.9% tax on household earnings in excess of $1 million per year (paid by less than 1% of households) will help us invest in public schools, health care, and other state services we all benefit from. Once implemented, it will also:  

  • Eliminate sales tax on personal care products, all diapers, and many over-the-counter drugs.  
  • Expand eligibility for the Working Families Tax Credit to 460,000 additional households, including young adults and seniors, helping lower-income families make ends meet. 
  • Set aside 5% of annual tax proceeds for the Fair Start for Kids Act, which increases access to early learning programs and provides resources to support child care and early learning providers.  
  • Provide school breakfast and lunch to all public school students.  
  • Exempt about 70% of all Washington businesses from the Business & Occupation tax.  

If a household earns $1,000,500 each year, total taxes owed would be approximately $50. The Millionaires Tax also provides a tax credit for the capital gains paid by some people. Sales of real estate are exempt, just as they are from the Washington capital gains tax. The tax would not apply to the equity or appraised value of a home.    

The legislation is likely to face a challenge at the ballot and in court. If it passes those hurdles, it is scheduled to take effect on Jan. 1, 2028, so the first tax returns and payments for 2028 taxable income will be due in April 2029.    

Other measures to help make life more affordable for Washingtonians include: 

  • Establishing a statewide program to provide ongoing energy bill assistance to eligible low-income households (HB 1903). The program will work in partnership with gas and electric utilities to ensure assistance is reflected directly on customers’ monthly bills.  
  • Expanding the senior property tax relief program to help an additional 30,000 Washingtonians stay in their homes (SB 6162). 

Strengthening protections for Washington workers  

  • HB 2355, now signed into law, establishes labor protections for domestic workers, including the right to minimum wage, a written contract, breaks, and protection from certain forms of discrimination. Learn more.  
  • HB 2105 requires employers to notify workers about federal I-9 form audits, protects against retaliation, limits federal access to employment records, and establishes enforcement mechanisms and penalties to ensure that workers’ rights are respected. Learn more. 
  • HB 1155 expands an existing ban on non-compete agreements to include most non-competes regardless of the date they are entered into. Workers should have the freedom to seek or accept a new job without undue interference from their previous employer. This builds on my 2019 legislation which began eliminating non-competes, and I was proud to sponsor the Senate version of this bill.  
  • HB 2479, now signed into law, strengthens Washington’s response to wage theft and enforcement by allowing workers to recover unpaid wages more quickly and fairly while their claims are being processed.   

Whether you participated in our town hall, called or emailed your thoughts on a bill, or testified in committee, I truly appreciate the time you spent engaging in the legislative process. We could not do our work in Olympia without you. The session may be over, but my office is always here anytime you have questions or concerns. It is an honor to represent you. 

Sincerely,  

Derek Stanford