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SB 5967

Concerning an exemption to the leasehold excise tax for leases on public lands.

2023-2024 Regular Session Introduced by Noel Frame and 6 co-sponsors

SB 5967 exempts leases on public lands from Washington's 12.84% leasehold excise tax, reducing costs for public land lessees but decreasing state revenue.

Public hearing in the Senate Committee on Ways & Means at 1:30 PM.
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Bill Summary · SB 5967

Legislative bill overview

SB 5967 creates an exemption to Washington's leasehold excise tax for leases on public lands. The bill allows certain leases of publicly-owned property to avoid the state's 12.84% excise tax that normally applies to leasehold interests. This targets a specific tax burden on those leasing government-owned land.

Why is this important

The leasehold excise tax significantly increases the cost of leasing public land, potentially affecting affordability for agricultural operations, small businesses, nonprofits, and other entities that lease state or local property. Exempting public land leases could reduce barriers to accessing government-controlled resources and lower operational costs for lessees, though it reduces state revenue from this tax source.

Potential points of contention

  • Revenue impact: The exemption reduces state tax collections; the bill's fiscal note would clarify how much revenue is at stake and whether this creates budget pressure
  • Scope definition: Unclear which "public lands" qualify—state lands only, or also county/municipal/tribal property—potentially creating loopholes or unintended coverage gaps
  • Equity concerns: May disproportionately benefit certain industries or lessee types over others, raising questions about whether this is appropriate tax policy or targeted subsidy

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

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