WA could collect $770M more than expected in taxes over 4 years
The Washington State Capitol and Supreme Court buildings in Olympia, photographed from Heritage Park on Oct. 21, 2020. (Jovelle Tamayo/Crosscut)
Washington is projected to collect $770 million more in taxes over the next four years than previously expected, according to a new state revenue forecast.
Tax collections are now expected to bring in an additional $191 million for the current two-year budget cycle, according to the state Economic Revenue Forecast Council. Another $579 million in higher-than-expected collections are projected for the 2025-27 budget cycle.
While some tax collections came in lower than expected – including the real estate excise tax – the projected increases are due in part to sustained consumer spending and employment, according to the Council forecast.
“Revenue collections remain steady, but we have seen personal income forecasts improving later in the forecast period as well as stronger total employment and construction employment forecasts,” Steve Lerch, executive director of the nonpartisan Council, said in a statement. “These changes have resulted in slight modifications for the November forecast.”
In the 60-day legislative session that begins in January, state lawmakers will write supplemental budgets that tweak the main two-year budgets they passed last year. Gov. Jay Inslee is expected to unveil his proposed supplemental budgets next month.