Full Breakdown
Washington Supreme Court Blocks Referendum on New Millionaires Tax
5/5/2026, 1:49:32 PM
Core Event and Legal Basis
The Washington Supreme Court issued a per curiam, unanimous order on Monday rejecting a petition to force the Secretary of State to process a referendum on the enacted millionaires tax. The court held that the law’s “necessity clause,” declaring the tax necessary for the support of state government, places the measure within the constitutional exemption from voter referendums.
Background, Tax Details, and Key Actors
Engrossed Substitute Senate Bill 6346 imposes a 9.9% tax on income above $1 million, effective 2028 with payments due April 2029, to fund K-12 education, health care, human services and higher education. The necessity clause was added to shield the measure from a referendum. The challenge was led by Brian Heywood, founder of Let’s Go Washington; opponents included House Majority Leader Joe Fitzgibbon, Senate Majority Leader Jamie Pedersen, Governor Bob Ferguson and Attorney General Nick Brown’s office, which includes Solicitor General Noah Purcell.
Data & Statistics
The tax levies 9.9% on income above $1 million; 154,455 signatures are required for a referendum and 308,911 for an initiative. State operating-budget share of income fell from 1.55% to 0.63% (?60% decline, 1995-2025).
Official Statements & Responses
The court affirmed that measures meeting the “support of state government” exception are exempt from referendum. Fitzgibbon called decision “good news for tax reform.” Brown’s office said it corrects a “brazen falsehood” about referendum eligibility. Invest in Washington Now called the tax a vital source of health and education funding.
Criticism & Opposition
Heywood called the necessity clause a “ruse” that blocks voter input, noting collections start in 2029. Attorney Joel Ard argued the clause negates an honest claim of necessity. Purcell email was cited as proof legislators added the clause to avoid a referendum.
Conflicting Reports & Gaps
The ruling addresses only the referendum exemption, not the tax’s constitutionality, leaving that issue unresolved. No independent revenue or fiscal impact analysis was provided.
Verbatim Quotes
- “a blank check to spend beyond their means and raise taxes later, and the people don’t get to weigh in.” — Brian Heywood, Let’s Go Washington founder
- “Without one, someone could try to subject the bill to a referendum.” — Noah Purcell, Washington Solicitor General (email)
- “That’s all the solicitor general was advising me on in those emails,” — Jamie Pedersen, Senate Majority Leader
- “ Laws that meet that standard are exempt from referendum under the Washington Constitution, the court said.” — Washington Supreme Court
Implications and Next Steps
The tax stays in force, and necessity-clause exemption blocks a voter referendum. Opponents may seek a constitutional challenge or meet the initiative signature threshold. State officials expect revenue for education, health and human services in 2029.
