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Bill

SB 5794

Adopting recommendations from the tax preference performance review process, eliminating obsolete tax preferences, clarifying legislative intent, and addressing changes in constitutional law.

2025-2026 Regular Session Introduced by Emily Alvarado and 11 co-sponsors

Washington eliminates obsolete tax preferences and clarifies remaining ones per performance review recommendations, increasing state revenue starting January 1, 2026.

Effective date 1/1/2026*.
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WeVote Research Nonpartisan
Bill Summary · SB 5794

Legislative bill overview

SB 5794 implements recommendations from Washington's tax preference performance review process by eliminating obsolete tax breaks, clarifying the legislative intent behind remaining tax preferences, and updating tax law to reflect recent constitutional changes. The bill underwent a partial gubernatorial veto before becoming law, with most provisions taking effect January 1, 2026.

Why is this important

Tax preferences (exemptions, deductions, credits) represent foregone state revenue and periodically require review to ensure they serve their intended purposes. This bill removes preferences that no longer function as designed or have become outdated, potentially redirecting resources to state priorities while maintaining clarity about which tax breaks remain intentional policy choices.

Potential points of contention

  • Revenue impact uncertainty: Eliminating tax preferences increases state revenue, but the partial veto suggests disagreement over which specific preferences should be cut and their fiscal effects on affected industries or groups
  • Retroactivity and fairness concerns: Changes to existing tax preferences may affect taxpayers who relied on them for planning, raising questions about whether changes should apply retroactively or be grandfathered
  • Constitutional compliance: The bill addresses "changes in constitutional law," which likely refers to recent court rulings; implementation details matter significantly for affected parties who may challenge the updates

Compiled from official sources — confirm details with the bill’s official record.

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