Department of Revenue

  Average Annual FTEs Near General Fund State Other Funds Total Funds
  (Dollars in Thousands)
Current Budget 1,389.9 578,978 44,862 623,840
2021-23 Maintenance Level 1,389.9 545,744 45,616 591,360
Difference from 2021-23 Original 0.0 (33,234) 754 (32,480)
% Change from 2021-23 Original 0.0% (5.7%) 1.7% (5.2%)

2022 Policy Other Changes

Bothell Field Office Relocation 0.0 617 0 617
Increased Legislative Support 5.0 1,345 0 1,345
Penalties and Interest Provisions 0.50 197 0 197
Unclaimed Property Funding 2.0 0 5,213 5,213
B&O Tax Exemption for HBE 0.10 16 0 16
Capital Gains Tax Modifications 0.10 43 0 43
Clean Energy Tax Deferral 0.40 166 0 166
I-405/SR-167 Tax Deferral 0.20 131 0 131
WFTC Implementation Support 0.0 2,594 0 2,594
2022 Policy Other Changes Total 8.3 5,109 5,213 10,322

2022 Policy Comp Changes

State Employee Benefits 0.0 7 0 7
Rep Employee Health Benefits 0.0 22 2 24
WPEA General Government 0.0 4,010 440 4,450
Non-Rep General Wage Increase 0.0 1,019 94 1,113
PERS & TRS Plan 1 Benefit Increase 0.0 107 11 118
2022 Policy Comp Changes Total 0.0 5,165 547 5,712

2022 Policy Central Services Changes

Archives/Records Management 0.0 6 0 6
Audit Services 0.0 6 0 6
Legal Services 0.0 254 29 283
CTS Central Services 0.0 612 70 682
DES Central Services 0.0 20 0 20
OFM Central Services 0.0 1,349 160 1,509
Self-Insurance Liability Premium 0.0 6 0 6
2022 Policy Central Services Changes Total 0.0 2,253 259 2,512
Total Policy Changes 8.3 12,527 6,019 18,546
2022 Policy Level 1,398.2 558,271 51,635 609,906
Difference from 2021-23 Original 8.3 (20,707) 6,773 (13,934)
% Change from 2021-23 Original 0.60% (3.6%) 15.1% (2.2%)

Policy Changes

Audit Services

Adjustments are made for each agency’s anticipated cost of audits performed by the State Auditor’s Office. (General Fund - State)

Legal Services

Adjustments are made for each agency's anticipated cost of Attorney General's Office legal services based on a three-year average. Because legal services costs are based on usage, funding provided in the central service model is not all inclusive. (Business License Account - State, Unclaimed Personal Property Account - Non-Appropriated, General Fund - State, other funds)

DES Central Services

Adjustments are made to reflect each agency’s anticipated share of charges from the Department of Enterprise Services for campus rent, parking, security and contracts; capital project surcharges; financing cost recovery; public and historic facilities; real estate services; risk management services; personnel service rates; the Perry Street and Capitol Campus child care centers; small agency services; and the department’s enterprise applications. See the 2021-23 Budget Instructions for allocation methodologies. (General Fund - State)

OFM Central Services

Adjustments are made to reflect each agency’s anticipated share of charges for existing statewide applications, the One Washington program, and other central services provided by the Office of Financial Management. See the 2021-23 Budget Instructions for allocation methodologies. (Business License Account - State, Unclaimed Personal Property Account - Non-Appropriated, General Fund - State, other funds)

WPEA General Government

The collective bargaining agreement includes a general wage increase of 3.25% for fiscal year 2023 and a lump sum payment for all employees hired before July 1, 2022. (Business License Account - State, General Fund - State, Timber Tax Distribution Account - State, other funds)

Bothell Field Office Relocation

Funding is provided for one-time costs to relocate Bothell staff to a more affordable facility that will occur during fiscal year 2023. (General Fund - State)

Increased Legislative Support

The Legislation and Policy Division and Research and Fiscal Analysis Division provide critical support to the Governor's Office, Office of Financial Management, and Legislature in the evaluation and analysis of tax measures to promote the effectiveness and adequacy of the state's revenue system. Funding is provided for additional tax policy specialists in these two divisions to ensure the quality, accuracy and timeliness of their work, which has increased in volume and complexity. (General Fund - State)

Penalties and Interest Provisions

Funding is provided for one-time costs to amend rules, program and test computer system changes. The department also will identify and update online publications related to RCW changes on how penalties and interest are calculated. (General Fund - State)

Unclaimed Property Funding

The Department of Revenue’s Unclaimed Property program returns millions of dollars to Washington residents each year. Funds are provided to invest in expanded outreach activities, hire a system specialist to support the online system, and procure two contract vendor auditors to perform thorough reviews and follow up with businesses to ensure accurate reporting. (Unclaimed Personal Property Account - Non-Appropriated)

B&O Tax Exemption for HBE

Funding is provided for the department's administrative costs related to making the B&O tax exemption under RCW 82.04.323 permanent. Making this tax exemption permanent reduces the Health Benefit Exchange's (HBE) administrative costs by $1 million per year, allowing it to maximize its funding for operating a health insurance market place. (General Fund - State)

Capital Gains Tax Modifications

Funding is provided for DOR's additional costs to clarify various administrative provisions of the capital gains tax statute that have been discovered during the implementation process. (General Fund - State)

Clean Energy Tax Deferral

Funds are provided for the costs to administer a new sales and use tax deferral that is provided for eligible investment projects of at least $2 million for qualifying manufacturing operations. This tax exemption is to incentivize manufacturers of components for clean vehicles, charging and fueling infrastructure, renewable hydrogen, and other types of related component manufacturing to locate in Washington. (General Fund - State)

I-405/SR-167 Tax Deferral

Funding is provided for the costs to administer a new sales and use tax deferral that is provided for five transportation construction projects on the I-405/SR 167 corridor. This will reduce the cost of project delivery by deferring state and local sales tax payments until the fifth year after projects are operationally complete. (General Fund - State)

WFTC Implementation Support

The Department of Revenue has identified crucial investments needed to support implementation of the Working Families Tax Credit program. Funds are provided to acquire fraud mitigation software, quality assurance services, and expanded outreach. These efforts will deploy appropriate security measures, satisfy OCIO auditing requirements related to the department’s investment in new information technology, and support efforts to increase enrollment. (General Fund - State)

State Employee Benefits

Health insurance funding is provided for state employees who are not covered by the healthcare coalition. The insurance funding rate is $936 per employee per month for fiscal year 2022 and $1,130 per employee per month for fiscal year 2023. (General Fund - State)

Rep Employee Health Benefits

Health insurance funding is provided as part of the master agreements for employees who bargain for health benefits as part of a coalition of unions. The insurance funding rate is $936 per employee per month for fiscal year 2022 and $1,130 per employee per month for fiscal year 2023. (Unclaimed Personal Property Account - Non-Appropriated, General Fund - State, Business License Account - State)

Non-Rep General Wage Increase

A general wage increase of 3.25%, effective July 1, 2022, is provided for state employees who are not represented by a union or who are covered by a bargaining agreement that is not subject to financial feasibility determination. (Business License Account - State, General Fund - State, Unclaimed Personal Property Account - Non-Appropriated, other funds)

PERS & TRS Plan 1 Benefit Increase

For eligible Public Employees' and Teachers' Retirement Systems Plan 1 members, this item provides an increase of 3%, up to a maximum of $110 per month. (Timber Tax Distribution Account - State, Business License Account - State, General Fund - State, other funds)

Archives/Records Management

Adjustments are made for each agency's anticipated share of charges for archives and records management services provided by the Secretary of State's Office. (General Fund - State)

CTS Central Services

Adjustments are made to reflect each agency's anticipated share of charges from Consolidated Technology Services (CTS) for the Office of the Chief Information Officer, Office of Cyber Security, state network, enterprise services, small agency IT services, security gateways, and geospatial imaging services. See the 2021-23 Budget Instructions for allocation methodologies. (Unclaimed Personal Property Account - Non-Appropriated, General Fund - State, Business License Account - State, other funds)

Self-Insurance Liability Premium

Adjustments are made to reflect each agency's share of the actuarially projected costs of the self-insurance liability premium. (General Fund - State)