WASHINGTON — A number of changes to Washington State laws went into effect July 1, with an emphasis on raising money for the state. Here's a quick rundown:
• People who earn more than $1 million a year will now have to tithe, or nearly so, as a 9.9% income tax becomes the first in the state’s history.
• That generated a huge backlash, with wealthy residents leaving the state. In an attempt to counter it, Democratic lawmakers rolled back the estate tax. The tax was reduced from a top rate of 35% down to 20% on estates valued at $9 million or more. Even with the reduction, though, Washington remains tied with Hawaii for the highest estate tax burden in the nation. Â
• The state gas tax got a 2% cost of living raise from 55.4 cents to 56.5 cents per gallon. The full tax brings in an average of $250 million a month, but the annual total keeps dropping as more consumers switch to electric and hybrid vehicles.
• Lawmakers are concerned about setting up sideboards on the use of artificial intelligence (AI). One example from the last session is House Bill 2155, which prohibits artificial intelligence, bots, or any nonhuman entity from using or claiming licensed nursing titles.
• Certain retail sales and use tax exemptions for data centers seeking to replace or refurbish server equipment have expired.
• To protect roadside workers, a new law cranks up the penalties speeding in designated work areas. First infractions now carry a fine of up to $225.
• Employers with 15 or more employees may no longer ask about an applicant's criminal history or conduct a background check until a conditional job offer is made. The goal is to give reformed individuals a fair chance to pitch themselves based on merit. Employers do have an out, though. They will be able to rescind the offer if a background check reveals a serious, incompatible crime.
• And workers in certain cities saw their minimum wage go up. The statewide general minimum wage of $17.13 didn’t change. It is the next highest in the nation, second only to Washington D.C.’s $17.95 an hour. But certain cities, plus King County and Sea-Tac, pay higher minimums, and some of them did go up. In Renton, the rate for mid-sized employers (15–500 employees) increased from $20.57 to $21.57 per hour. And in Everett the rate for covered employers also went up from $18.77 to $19.77.
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