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WA Supreme Court divided on initiative to repeal 'millionaires tax'
Voters will soon decide the fate of Washington's new income tax on high earners, known as the 'millionaires tax,' but there's controversy over how it's being presented on the ballot, and the issue has divided the state's Supreme Court.
OLYMPIA, Wash. - Voters will soon decide the future of Washington’s new income tax on high-earners.
Governor Bob Ferguson signed the bill back in March, and now the survival of the so-called "millionaires tax" hinges on the November election.
Adding to the drama, controversy over how the measure is presented on the ballot has divided the state Supreme Court.
Senate Bill 6346 established a 9.9% tax on household income over $1 million.
Gov. Bob Ferguson presents the "millionaires tax" bill after signing it into law on March 30, 2026. (FOX 13 Seattle)
What they're saying:
Supporters say it is a historic step to fix Washington’s regressive tax code, providing relief for families and small businesses while funding services like health care, childcare, and education.
"We are facing an affordability crisis. It is time to change our state's outdated, upside down tax system to serve the needs of Washingtonians today," Governor Ferguson said.
Critics contend the new income tax violates the state constitution, drives away businesses and wealth, and opens the door for an income tax on all Washingtonians.
Brian Heywood, founder of the political committee Let's Go Washington, spearheaded the effort to bring the debate before voters through Initiative 645, which would repeal the new income tax and prohibit future taxes on income.
Heywood says the millionaire tax is simply an income tax with a threshold set at a million now. He says lawmakers will be able to lower that threshold easily in future legislative sessions.
"The minute we asked people do you think this is coming for you, it's overwhelmingly, they go, 'Yeah, it's coming for me,'" Heywood said.
Let's Go Washington supporters tally the total number of signatures collected for I-645.
With ballots being sent out this week, voters will see I-645 with an explanation of the millionaires tax, but the last sentence sparked a legal challenge.
The contested text reads: "This measure would decrease funding for public K-12 education, higher education (including universities and community colleges), and human services (primarily healthcare)."
Citizen activist Arthur West filed an emergency motion to block that fiscal impact statement from appearing on ballots.
West says he doesn't see this as a partisan issue and even supports a progressive income tax, but he says his goal is to protect the fairness and constitutionality of the initiative process.
West claims the fiscal impact statement is not only misleading but puts the thumbs on the scale in favor of an income tax instead of leaving the decision up to voters.
"I would like the voters to know that that wording is not correct," West said, adding: "The legislature is the one that makes cuts to any program. The initiative process in this case merely impacts the general fund."
Critics also argue it is untrue to say the initiative would decrease funding for services when that revenue doesn't even exist yet and won't come in until 2029.
But that fiscal impact statement is required under a state law passed in 2022, which requires a description laying out consequences of any initiative or referendum that affects state revenue.
"This law allows the attorney general, after an initiative has been certified and half a million people sign it, to at the last minute insert what is in effect a poison pill," West said.
Battle brews over Washington ‘millionaires tax’ repeal initiative
A political showdown is taking shape in Washington over the state’s "millionaires tax," with opponents gathering more than half a million signatures to put a repeal measure on the ballot this fall.
The State's defense and Supreme Court split
The fiscal impact statement for I-645 was written by Attorney General Nick Brown’s office. A spokesperson told FOX 13:
"The law requires the AG’s office write a neutral and accurate disclosure. That is what we did."
The AG’s office argued in court that there is nothing misleading about the statement because I-645 would substantially reduce revenue for the general fund, which would necessarily reduce funding for the services supported by the general fund.
West’s motion to block the fiscal impact statement was taken up by the state Supreme Court, resulting in a 4-4 split decision, with one justice not ruling due to an illness. Four justices were in favor of blocking the sentence, but without a majority opinion, the motion was denied. As a result, the ballots are printed with the contested fiscal impact statement included.
How wording changes the polls
Why you should care:
The polling firm DHM Research polled 800 Washingtonians on the initiative, showing half of them the fiscal impact statement and leaving it off for the other half.
The results showed a significant difference:
- Among those who saw the fiscal impact statement: 57% wanted to keep the income tax, while 35% favored repealing it (a 22-point gap).
- Among those who did NOT see the fiscal impact statement: 44% wanted to keep the income tax, while 40% favored repealing it (a much closer 4-point gap).
The absence of that single fiscal impact sentence changed a 22 point margin down to just four points.
A yes vote on I-645 would repeal the income tax while a no vote on I-645 would keep the income tax.
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The Source: Information in this story came from Let's Go Washington, the Washington State Legislature, the office of Washington Attorney General Nick Brown, and FOX 13 Seattle reporting.