Economic Alliance Snohomish County Responds to Senate Passage of SB 6346

Snohomish County, Wash., Feb. 17, 2026 — Economic Alliance Snohomish County (EASC) today issued the following statement in response to the Washington State Senate’s passage of SB 6346, legislation that would establish a new 9.9% state income tax on annual income over $1 million and now advances to the Washington State House of Representatives.

SB 6346 passed the Senate on a 27-22 vote and would impose a 9.9% personal income tax on income above $1 million beginning in 2028, with first tax filings expected in 2029 if the bill becomes law. Proponents describe it as a “millionaires’ tax” aimed at generating revenue for education, health care and other services, while providing targeted tax relief to low- and middle-income families and certain small businesses.

“EASC continues to believe that any fundamental restructuring of Washington’s tax system must be carefully evaluated for its economic impacts,” says Ray Stephanson, President & CEO at EASC. “While the Senate has advanced this proposal, significant concerns remain about how this policy could affect businesses, particularly those operating as pass-through entities, and the broader regional economy.”

EASC reiterates key concerns regarding the current form of SB 6346, including:
Stacked Taxation Risk: Many Washington employers already pay the Business & Occupation (B&O) tax on gross receipts. The proposed income tax could layer additional tax liability on the same base of business income.

Impact on Pass-Through Entities: Sole proprietorships, partnerships, LLCs, and S-corporations — common organizational forms for Snohomish County businesses — could face meaningful personal tax exposure tied to business income.

Challenges for Seasonal/Project-Based Businesses: Without provisions for income averaging or loss carryforwards, businesses with volatile revenue may face cash-flow challenges.
Administrative and Compliance Burdens: The introduction of a new tax category would add filing complexity and potential costs for businesses without large internal tax departments.

EASC supports tax policies that foster a predictable and competitive business climate, promote job creation, and sustain long-term economic growth throughout Snohomish County. The organization continues to monitor SB 6346 as it moves through the House of Representatives and will engage policymakers with further analysis and input on behalf of regional employers.

About Economic Alliance Snohomish County:
As the largest regional economic development organization in Snohomish County, Economic Alliance Snohomish County (EASC) supports a globally competitive regional economy in which all businesses can thrive and participate equally through effective advocacy and resource access. 
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For more information, please contact: 
Pablo Colindres Moreno
Marketing and Communications Manager
Economic Alliance Snohomish County
PabloC@EconomicAllianceSC.org
425.248.4221