(The Center Square) - Let’s Go Washington on Friday announced they have received their initiative ballot titles from the office of Washington State Attorney General Nick Brown, as the group prepares to launch a signature gathering campaign aimed at repealing the new income tax.
ESSB 6346, signed into law by Governor Bob Ferguson just over a month ago, applies a 9.9% tax on income above one million dollars or combined household income above that threshold starting with 2028 earnings.
On April 10, LGW filed close to a dozen initiatives aimed at repealing the so-called "millionaire’s tax." Each of those was given a title by the AG’s office on Thursday, so now it’s a matter of deciding which to move forward.
“We expect Pacifica Law to play their political games and challenge the titles at the last moment, so we’re keeping our options open," LGW’s Hallie Balch told The Center Square on Friday.
"But people can preregister for sheets to receive the petitions as quickly as possible when we have the title we’re going with."
On May 4, the Washington State Supreme Court denied LGW’s appeal of a ruling from Secretary of State Steve Hobbs who rejected the group’s referendum attempt.
Hobbs cited the fact state lawmakers attached a “necessity clause” to the bill, stating that despite the fact the tax doesn’t start until first payments begin in 2029, it is necessary for the immediate support of state government.
That left LGW with mounting an initiative campaign and taking the issue directly to voters or the legislature, even as a legal challenge proceeds, which could take well over a year to play out.
LGW Spokesman Darren Littell told The Center Square they have been overwhelmed with people contacting them about wanting to help gather signatures for an initiative to repeal the income tax.
“It’s truly unprecedented every day when we go out and talk to people," he said.
"We hear more and more stories of folks that are concerned that this is going to affect them, and that this tax is going to be expanded, and they already have plans to move out,” Littell said.
“They’re asking how can I help? How can I sign up? What can I do? We’ve got thousands of people who have signed up to receive petitions, which is more than we've ever had before in any of the other initiative signing campaigns we've done. So, we're pretty excited about the enthusiasm out there, and we're going to continue to build on it.”
Washington voters have rejected an income tax 10 times before, and the Washington State Supreme Court has also repeatedly ruled that income is “property”, such that it must be taxed uniformly, precluding a tax on only high-income earners.
Gov. Ferguson and Senator Jamie Pedersen, the sponsor of the income tax bill, have repeatedly stated that the people should have the right to vote on the income tax, however the legislation was crafted to preclude voters from a referendum.
In emails obtained exclusively by The Center Square, Sen. Pedersen coordinated with the AG's office to craft a bill with a “necessity clause”, such that it would not be subject to a voter referendum.
The AG’s office maintains there was nothing unusual about the coordination as lawmakers often seek legal advice on legislation.
Initiative decisions
“We are still trying to decide 100% between doing initiatives to legislature versus to the people," said Littell.
"But by getting back the ballot titles, we're going to be able to start collecting signatures here very, very soon, and we're excited about that,” he added.
If the organization runs an initiative to the voters, instead of the legislature, lawmakers couldn’t touch the issue for at least two years.
“If it goes to the people and is voted on in the fall, then it would be locked in for two years where nobody could touch it or do anything with it," Littell said.
"If it goes to the legislature, they would have to consider it, but as we've seen recently, they don't seem to hold a lot of reverence for the Constitution, so they could do whatever they want with it, apparently."
"And if they don't do anything with it, then it would go to the ballot in 2027,” she said.
Invest in WA Now, one of the main advocacy groups behind the income tax emailed The Center Square upon learning that LGW had secured ballot titles for its repeal effort.
“Polling shows Washingtonians overwhelmingly support fixing Washington’s upside down tax code, with 60% supporting the Millionaires Tax to fund education and health care," said the email from Invest in WA Now.
"This data is backed up by the landslide rejection of Brian Heywood’s I-2109, with 64% of voters choosing to maintain the capital gains tax on extraordinary profits in 2024 and by an independent poll showing 61% support the Millionaires Tax.”
Littell said Invest in WA Now wants to convince people that the income tax will only apply to the super-rich and be a benefit to most Washingtonians, but he suggests people see through that.
For an initiative to qualify for the November ballot, Let’s Go Washington would need to gather over 300,000 signatures by July 2. The group has said they would seek to gather closer to 400,000 signatures, to help ensure success following potential signature or petition challenges.
Had the group been allowed to proceed with a referendum to recall the tax, it would only have needed half the number of signatures to put the issue to voters.