Governor Unveils Tax Bill

January 20, 2022

Identical Senate (SSB 3044) and House (HSB 551) bills were made public.

ABI members established tax reform as a key priority for 2022. Approved policy also calls for reduction of income tax rates for individuals and corporations. When fully implemented, a new flat personal income tax of 4% will save taxpayers over $1.58 billion in 2026. The corporate tax rate would also decline over time and settle on a flat rate of 5.5%.

Other important reforms include an elimination of state taxes on retirement income in tax year 2023, elimination of capital gains taxes on stocks held as part of an employee stock ownership program (ESOP) upon retirement, and the elimination of taxes on cash rent income for farmers who retire from farming and rely on cash rent revenue as their retirement income. 

Other tax reform proposals expected this year include a plan from Sen. Dan Dawson who leads the Senate Ways and Means Committee. It is anticipated this plan will also meet the ABI priorities for tax reform and ABI staff looks forward to finding consensus on one of our top priorities.  For more information or questions, contact JD Davis at