The next legislative session is fast approaching and some state lawmakers are wasting no time in signaling their intent to either fully remove or limit the impacts of the slew of new state taxes approved in the 2025 legislative session. 

Washington Gov. Bob Ferguson unveiled a plan Dec. 19 to steer $3 billion into preserving the state’s roads and bridges and building three new ferries over the next decade.

The governor also signed an executive order to get the ball rolling on establishing a new cabinet-level Department of Housing. 

New federal legislation introduced by U.S. Rep. Dan Newhouse would expand tax incentives for investments in new nuclear energy projects in the U.S., which the Washington Republican said puts the energy source on parity with other sources. 

Several of the latest bills pre-filed for the coming 2026 legislative session have the potential to expand or increase business and occupation, or B&O, taxes, according to fiscal think tank Washington Research Council. 

Gov. Bob Ferguson warned Dec. 2 that the budget proposal he’ll release this month will rely solely on spending cuts and not higher taxes to overcome what he says is a multi-billion dollar shortfall.

It is the latest salvo — and likely not the last — in a tax debate expected to dominate the 2026 session that begins Jan. 12. 

Washington state budget writers got a mild dose of good news on Nov. 18, but are still looking at a strained balance sheet.

A security company has dropped its lawsuit over Washington’s new sales tax on services weeks after filing it.

It’s unclear why.