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HB2167 • 2026

Sales tax reductions

Keeping the legislature's promises by reducing the sales tax in the event of an income tax or a tax on individual earnings.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Representative Couture, Representative Jacobsen, Representative Chase, Representative Ley, Representative Schmidt, Representative Abbarno, Representative Marshall, Representative Barkis, Representative Barnard, Representative Dye, Representative Rude, Representative McClintock, Representative Graham, Representative Valdez, Representative Schmick, Representative Manjarrez
Last action
2026-01-12
Official status
H Finance
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Sales tax reductions

Sales tax reductions

What This Bill Does

  • Sales tax reductions

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-12 House

    First reading, referred to Finance.

Official Summary Text

Sales tax reductions

Current Bill Text

Read the full stored bill text 
AN ACT Relating to keeping the legislature's promises by reducing 1
the sales tax in the event of an income tax or a tax on individual 2
earnings; adding a new section to chapter 82.08 RCW; and creating a 3
new section. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. (1) The legislature finds that Washington 6
is now the fourth most expensive state in the nation to live in and 7
that many residents are struggling to make ends meet under the weight 8
of rising housing, transportation, and everyday living costs. 9
Meaningful tax relief, rather than additional taxation, is necessary 10
to help Washington families remain stable and financially secure.11
(2) The legislature also finds that ever-increasing taxes imposed 12
at every level of government only makes this affordability crisis 13
worse. Layering new taxes onto already overburdened households and 14
businesses accelerates the cost of living, suppresses economic 15
opportunity, and makes it harder for employers to retain and hire 16
workers. The state already collects more than enough revenue to fund 17
essential services, and that continued revenue growth demonstrates 18
that the problem is not a lack of funding but a lack of responsible 19
fiscal restraint. We have a spending problem, not a revenue problem.20
H-2599.1
HOUSE BILL 2167
State of Washington 69th Legislature 2026 Regular Session
By Representatives Couture, Jacobsen, Chase, Ley, Schmidt, Abbarno,
Marshall, Barkis, Barnard, Dye, Rude, McClintock, Graham, Valdez,
Schmick, and Manjarrez
Prefiled 12/18/25. Read first time 01/12/26. Referred to Committee
on Finance.
p. 1 HB 2167
(3) The legislature further finds that proposals to impose a 1
broad-based income tax or a tax on individual earnings are deeply 2
misguided and would be economically damaging to Washington state. An 3
income tax or a tax on individual earnings would undermine the 4
state's competitive advantage, drive employers and investment 5
elsewhere, and burden families with an unpredictable and intrusive 6
new tax. Such a tax has consistently been ruled unconstitutional and 7
consistently rejected by voters, reinforcing the idea that it is an 8
inappropriate, unwanted, and unnecessary new tax. 9
(4) Therefore, the legislature intends to reduce the state sales 10
tax to deliver meaningful relief to working families, while 11
attempting to mitigate the harm caused by an income tax or a tax on 12
individual earnings. 13
NEW SECTION. Sec. 2. A new section is added to chapter 82.08 14
RCW to read as follows: 15
In the event the legislature levies an income tax or a tax on 16
individual earnings, the department of revenue shall reduce the state 17
retail sales and use tax rate established in RCW 82.08.050 a 18
commensurate amount relative to the projected revenue increase to the 19
state from the income tax or the tax on individual earnings.20
--- END ---
p. 2 HB 2167