Ferguson says the latest proposal ensures money goes back to families and small businesses in Washington state.

OLYMPIA, Wash. — Washington Gov. Bob Ferguson said he would be signing the latest proposal of the proposed millionaire income tax, according to a statement released by the governor’s office Friday.

“I’ve said from the beginning of the discussion around the Millionaires’ Tax: Any bill I sign must send a significant percentage of that revenue back to Washington families and small business owners to make life more affordable. We must significantly expand eligibility for the Working Families Tax Credit, and reduce taxes on small business owners,” said Gov. Ferguson.

“I’m glad to say the latest floor amendment to the bill achieves these critical goals, and will help make our state more affordable. I will sign this version of the bill.”

The update from Gov. Ferguson comes just three days after saying he would not be signing.

The governor said the new proposal includes free school lunch and breakfast for all Washington state students. Nearly half a million Washington households would also become eligible for the Working Families Tax Credit, and would receive checks from the state.

It also exempts over-the-counter medicines from sales tax, invests 5% of the total revenue into ‘Fair Start for Kids Accounts,’ which can only be used for childcare and early learning.

The proposal, which would institute Washington’s first-ever income tax, would impose a 9.9% levy on household earnings above $1 million per year. The measure also includes the elimination of sales tax on personal hygiene products and diapers, along with tax breaks for small businesses and low-income families.

Rep. April Berg, D-Mill Creek, who sponsored the amended version said she was “really pleased,” to hear Ferguson’s thoughts.

“I hope that makes my members excited,” said Berg.

When asked if she thought the latest version would pass off the floor of the House, Berg said, “Absolutely.”

She said she was “very confident” it would also pass out of the Senate before the end of the session Thursday.

The endorsement pleased State Sen. Jamie Pedersen, the sponsor of the original income tax proposal.

“This is great news for anyone who cares about funding our schools and is tired of a tax code that relies far too much on working families, said Pedersen, D-Seattle. “The changes have made this bill even stronger and Washington’s schools and working families are the big winners today.”

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While Democrats celebrated the news, Republican lawmakers continued to push back against the tax and the governor’s choice to support it.

“Washingtonians have voted down an income tax 11 times. That should mean something to the people in charge,” said Senate Republican Leader John Braun, of Centralia. “Instead, the governor is signaling he’ll sign a bill that moves us toward the very thing voters have repeatedly rejected.”

Republican lawmakers continue to express concerns that this tax opens the door for expansion of income taxes, and that this won’t solve the issues of affordability.

“And despite all their talk about affordability, the end result is the same old formula — more taxes, more government spending, and very little that actually lowers costs for working individuals and families,” said Sen. Nikki Torres, R-Pasco.

The latest version still needs to pass off the House flooor, as well as in the Senate, before it would go to the governor to sign. 

Gov. Ferguson added he would review any further amendments before the final bill is passed.