Senate Ways & Means Moves Bill to Remove Tax Triggers

On Wednesday, the Senate Ways & Means Committee passed SSB 1250, which is legislation that eliminates the tax triggers from the 2018 tax reform law and also phases out the inheritance tax. The tax bill in 2018 required that future tax cuts are contingent upon hitting two triggers. Those triggers are the requirements that net general fund revenues for the end of FY22 equal or exceed $8.3146 billion, and also equal or exceed 104% of the net general fund revenues for the end of FY21. Elimination of the triggers will give businesses certainty and predictability when it comes to tax planning and will allow them to make greater investments in their companies. The Revenue Estimating Conference (REC) is set to meet in the next few weeks. Its budget estimate for FY22 will likely have a profound impact on whether or not the legislature ultimately decides to eliminate the triggers from law.