Washington Supreme Court blocks referendum on new income tax

The Washington state Supreme Court ruled Monday that the state's newly passed income tax cannot be overturned through a referendum campaign.

Why it matters: Opponents of the tax — which targets people who make more than $1 million a year — now face a tougher path to repeal it at the ballot box.

• They would need to pursue a citizen initiative, which requires more signatures to qualify for the ballot.

Catch up quick: Senate Bill 6346, which Washington lawmakers approved in March, will impose a 9.9% tax on annual incomes over $1 million starting in 2028.

• In passing the tax, the Legislature declared it "necessary for the support of the state government and its existing public institutions."
• That language led Secretary of State Steve Hobbs to reject a referendum petition to repeal the law earlier this year, saying the tax is exempt from the referendum process.

Yes, but: Brian Heywood, founder of Let's Go Washington, which filed the referendum petition, challenged Hobbs' decision in court.

• He and other plaintiffs argued that laws can be exempt from referenda only if they relate to the immediate preservation of public health, peace or safety.

What they're saying: The high court rejected that claim Monday, writing that the state constitution also allows laws to be protected from referendum campaigns if those laws support state government.

• "We have long held that such laws are not subject to popular referendum," Chief Justice Debra Stephens wrote in Monday's decision.

By the numbers: Referendum petitions, which ask voters to approve or reject a recently passed law, require 154,455 signatures to qualify for the ballot in Washington.

• A citizen initiative, by contrast, requires 308,911 signatures to qualify.

What we're watching: Another court case challenging the constitutionality of the income tax is still active. The high court did not weigh in on that issue in Monday's ruling.

• For an initiative to overturn the income tax to go before voters this fall, opponents would need to gather the necessary signatures by early July.