If you're a business owner in Washington (particularly in King, Pierce, or Snohomish County), you're probably wondering how this month's election results will affect you. While the election results are not yet certified, there has been quite a bit of speculation about what the preliminary results may mean for area businesses.
In this month's election, there were 12 advisory votes on the ballot allowing voters the option to maintain or repeal 2019 tax legislation. However, these results are non-binding and do not repeal these laws. The advisory votes originated from a 2007 ballot measure from initiative-filer Tim Eyman. In interviews, Eyman's stated intent with the advisory votes is to inform voters of the tax measures taken by the legislature in the last year. However, in practice they are often confusing to voters since they are non-binding and do not contain details of the underlying legislation or its impact on revenues and spending.
The bottom line for business owners in Washington is that increased taxes such as the Real Estate Excise Tax and the Service Business & Occupation surcharge to fund workforce education will still take effect January 1, 2020 - despite voters advising the legislature to repeal these measures.
Also noteworthy is that Tim Eyman's statewide Initiative 976 is projected to pass. This measure reduces the annual car tab fee to $30 by repealing cities' authority to charge car tab fees for local transportation projects and rolling back fees used by Sound Transit. In response, Gov. Inslee's office has put a hold on upcoming transportation spending due to the anticipated budget losses. This could impact contractors and real estate developers, specifically, as these transportation projects may get delayed or cancelled. However, news sources indicate there may be litigation on this issue, so the ultimate impact is still unknown.