Schoesler reports on bills passed by Senate

OLYMPIA – Tuesday, Mar. 8, was the deadline for the Senate to pass it's own bills, other than those considered "necessary to implement the budget."

"With floor cutoff now history, the Senate has resumed committee meetings, this time to hold public hearings n bills approved by the House," said Republican Senator Mark Schoesler of Ritzville. "Meanwhile, the House is conducting public hearings on measures passed by the Senate."

Schoesler said the Senate focused a lot of time the previous weekend on what he called one of the worst bills of the 2021 legislative session. Senate Bill 5096, originally requested by Governor Inslee, would impose a 7% state income tax on capital gains.

Schoesler said all of his Republican colleagues and three Democrats voted against the bill, but 25 Democrats voted in favor, allowing for it to pass 25-24.

"One of Washington's advantages when it comes to attracting talent and companies to the state has been the lack of a state income tax," Schoesler said. "If this bill becomes law, we will lose that competitive advantage and I'm very concerned that many wealthy Washingtonians will leave the state, taking their money with them. That will hurt our state."

Schoesler said Washington voters have rejected a state income-tax proposal 10 times over the past 85 years, and a recent statewide Elway Poll showed only 41% of respondents support a tax on capital gains.

"Contrary to what some Democrats have claimed, our state's long-term revenue outlook is solid and improving," Schoesler said. "Although there was a temporary dip in revenue last year due to the COVID-19 shutdown, state government is again in good shape on the revenue front. Washington doesn't want or need a state income tax. It's disappointing that the Democrats chose to ignore the revenue figures and voters' sentiments and pass this unnecessary and bad bill anyway."

Schoesler said one bright point was just before the final vote Saturday, .the Senate approved an amendment removing language declaring the tax's enactment to be an emergency.

"If the so-called "emergency clause" had remained in the bill, it would have prevented citizens from filing a referendum to place SB 5096 on the state's next general-election ballot, for voters to confirm or repeal," Schoesler said. "I'm very glad the emergency clause was removed because otherwise it would have preempted the voters' right to challenge this bill later if it becomes law."

If the bill is approved by the Legislature in it's current form and signed into law by the governor, it could end up on the statewide ballot as a referendum or in court before it can take effect, Schoesler said.

"The state Supreme Court has rejected similar state income-tax measures several times," Schoesler said.

Schoesler said the Senate unanimously passed Senate Bill 5454, his proposal to help people who lost homes to wildfires last September, including residents in and near the Whitman County towns of Malden and Pine City.

Under the bill, Washington residents who lost a home to wildfire between Sept. 1 and Sept. 19, 2020, would be exempt from paying property taxes on the full value of the original structure for three years, if the home is being rebuilt or physically improved.

"This bill is just a way to offer a little bit of relief by helping ease their financial burden as they try to rebuild their homes and their lives," Schoesler said.

Nearly 300 homes, including more than 120 residences in or near Malden and Pine City, were destroyed in the September wildfires.

Schoesler said four of his other prime-sponsored bills are awaiting public hearings in the House.

SB 5202 would allow school districts to create a "depreciation subfund" that can receive a transfer of up to 2% of a school district's general fund each fiscal year.

Schoesler said SB 5251 is his annual effort to "clean up" the state tax and licensing codes, to get rid of conflicting and unclear language. Schoesler said the bill had a public hearing Mar. 11 after receiving unanimous approval by the Senate.

SB 5296 would make a technical fix to language concerning the retirement system for Washington State Patrol troopers.

SB 5342 would provide what Schoesler called a long-needed update on elections for irrigation districts.

Schoesler also reported on the state Supreme Court striking down the state's felony drug-possession law because it doesn't require prosecutors to prove that someone knowingly or intentionally possessed drugs.

"The ruling was in a case of a Spokane woman who says she received a pair of jeans from a friend that had a small bag of methamphetamine in a pocket," Schoesler said. "Some attorneys say that the ruling could result in tens of thousands of convictions being vacated. It also could mean shorter sentences for some inmates.

Schoesler said he joined several senators last week in sponsoring SB 5468, which tries to clarify the state law in question. The bill is now in the Senate Law and Justice Committee.