Department of Revenue
| Average Annual FTEs | Near General Fund State | Other Funds | Total Funds | |
|---|---|---|---|---|
| (Dollars in Thousands) | ||||
| Current Budget | 1,500.8 | 757,740 | 54,032 | 811,772 |
| 2025-27 Maintenance Level | 1,492.8 | 792,716 | 56,212 | 848,928 |
| Difference from 2025-27 Original | (8.0) | 34,976 | 2,180 | 37,156 |
| % Change from 2025-27 Original | (0.5%) | 4.6% | 4.0% | 4.6% |
2025 Policy Other Changes |
||||
| 988 Tax Increase for Admin Costs | 0.30 | 77 | 0 | 77 |
| B&O Tax Increase Admin Costs | 6.8 | 1,604 | 0 | 1,604 |
| Admin of Cap Gains Tax | 2.6 | 897 | 0 | 897 |
| Leg Tracking System Replacement | 1.0 | 2,808 | 0 | 2,808 |
| Reduce - Management of hiring | 0.0 | (1,500) | 0 | (1,500) |
| Reduce - DOR Property Tax Grants | 0.0 | (1,000) | 0 | (1,000) |
| Spanish Portal Feasibility Study | 0.0 | 250 | 0 | 250 |
| Admin of Timber Surcharge Temp | 0.40 | 101 | 0 | 101 |
| Wealth Tax Admin Expenditures | 46.7 | 23,072 | 0 | 23,072 |
| 2025 Policy Other Changes Total | 57.8 | 26,309 | 0 | 26,309 |
2025 Policy Comp Changes |
||||
| Non-Rep General Wage Increase | 0.0 | 3,275 | 288 | 3,563 |
| Non-Rep Targeted Pay Increases | 0.0 | 133 | 0 | 133 |
| Non-Rep Minimum Starting Wage | 0.0 | 8 | 0 | 8 |
| Updated PEBB Rate | 0.0 | (417) | (51) | (468) |
| PERS & TRS Plan 1 Benefit Increase | 0.0 | 185 | 20 | 205 |
| Pension Benefit Amortization | 0.0 | (668) | (70) | (738) |
| 2025 Policy Comp Changes Total | 0.0 | 2,516 | 187 | 2,703 |
2025 Policy Central Services Changes |
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| Archives/Records Management | 0.0 | 4 | 0 | 4 |
| Audit Services | 0.0 | 11 | 2 | 13 |
| Legal Services | 0.0 | 526 | 75 | 601 |
| WTS Central Services | 0.0 | 215 | 29 | 244 |
| DES Central Services | 0.0 | 42 | 2 | 44 |
| OFM Central Services | 0.0 | 2,221 | 317 | 2,538 |
| GOV Central Services | 0.0 | 18 | 2 | 20 |
| 2025 Policy Central Services Changes Total | 0.0 | 3,037 | 427 | 3,464 |
| Total Policy Changes | 57.8 | 31,862 | 614 | 32,476 |
| 2025-27 Policy Level | 1,550.6 | 824,578 | 56,826 | 881,404 |
| Difference from 2023-25 | 49.8 | 66,838 | 2,794 | 69,632 |
| % Change from 2025-27 Original | 3.3% | 8.8% | 5.2% | 8.6% |
Policy Changes
988 Tax Increase for Admin Costs
Funds are provided to administer a rate increase from 40 cents per line to 70 cents per line to the 988 behavioral health crisis response and suicide prevention line tax. This tax aids Washingtonians in need by funding the statewide behavioral health crisis response and suicide prevention line. (General Fund-State) (General Fund - State)
B&O Tax Increase Admin Costs
Effective October 1, 2025, the service and other rate for taxpayers with an annual income of greater than $1M will increase from 1.75% to 2.1% until December 31, 2026. In January 1, 2027, all business and occupation rates will increase by 10%. There will be no fiscal impact to the workforce education investment account. Funds are provided to the agency to administer these changes. (General Fund-State) (General Fund - State)
Admin of Cap Gains Tax
Funds are provided to administer capital gains tax adjustments made in proposed agency request legislation. (General Fund-State) (General Fund - State)
Leg Tracking System Replacement
The Department of Revenue uses a legislative tracking system from 2007 to generate fiscal notes, conduct bill analysis, and develop financial estimates. The agency will purchase a new program and hire IT staff to build out the selected program to meet modern business needs. The new system would replace the current tracking system by the end of fiscal year 2027. (General Fund-State) (General Fund - State)
Reduce - Management of hiring
The agency will find cost savings by managing hiring practices during the 202527 biennium. (General Fund - State)
Reduce - DOR Property Tax Grants
The agency will make reductions to the current property tax grants and subsidies program in fiscal year 2025 and for the 2025-27 biennium. (General Fund - State)
Spanish Portal Feasibility Study
The department conducts outreach and administers the Working Families Tax Credit program, which experiences significant gaps in access for Spanish-speaking Washingtonians. Funding is provided for the department to contract a feasibility study of options to support a Spanish Access Portal and increased outreach for the Working Families Tax Credit program. (General Fund-State) (General Fund - State)
Admin of Timber Surcharge Temp
Funds are provided to administer the temporary increase of the timber and wood activity surcharge from 0.052% to 0.072%. (General Fund-State) (General Fund - State)
Wealth Tax Admin Expenditures
Funds are provided to administer a 1% wealth tax on individuals with worldwide wealth over $100M. (General Fund-State) (General Fund - State)
Non-Rep General Wage Increase
Funding is provided for wage increases for state employees who are not represented by a union or are not under a bargaining agreement that is subject to financial feasibility determination. It is sufficient for a general wage increase of 3%, effective July 1, 2025, and a general wage increase of 2%, effective July 1, 2026. This item includes both general government and higher education workers. (Business License Account - State, General Fund - State, Unclaimed Personal Property Account - Non-Appropriated, other funds)
Non-Rep Targeted Pay Increases
Funding is provided for classified state employees who are not represented by a union or not covered by a bargaining agreement subject to financial feasibility determination, for pay increases in specific job classes in alignment with other employees. (General Fund - State)
Non-Rep Minimum Starting Wage
Funding is provided for a starting wage of $18 per hour for state employees who are not represented by a union or are not covered by a bargaining agreement subject to financial feasibility determination. (General Fund - State)
Updated PEBB Rate
This item adjusts the employer funding rate for public employee insurance benefits to reflect policy-level decision packages. It increases the rate by $8 per month in the first fiscal year and decreases the rate by $34 per month in the second fiscal year, compared to the maintenance-level update, for a total rate of $1,315 in the first year and $1,355 in the second year. (Business License Account - State, Timber Tax Distribution Account - State, Unclaimed Personal Property Account - Non-Appropriated, other funds)
PERS & TRS Plan 1 Benefit Increase
An adjustment is made for pension contribution rates, including to fund a benefit increase of 3%, up to a maximum of $110 per month for eligible Public Employees' and Teachers' Retirement Systems Plan 1 members. (Business License Account - State, General Fund - State, Unclaimed Personal Property Account - Non-Appropriated, other funds)
Pension Benefit Amortization
An adjustment is made to the base pension rates, as set out in a proposed bill addressing the calculation of the base rate for the 2025–27 biennium, as well as amortization of Plan 1 benefit increases. (Business License Account - State, Timber Tax Distribution Account - State, Unclaimed Personal Property Account - Non-Appropriated, 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)
Audit Services
Adjustments are made for each agency's anticipated cost of audits performed by the State Auditor's Office. (Business License Account - State, General Fund - State, Unclaimed Personal Property Account - Non-Appropriated)
Legal Services
Adjustments are made for each agency's anticipated cost of legal services provided by the Attorney General's Office. Because legal services expenditures are based on consumption, funding provided in the central service model is not all inclusive. The methodology to estimate consumption is a two-year average and allows for analysis to incorporate unique agency circumstances. (Business License Account - State, General Fund - State, Unclaimed Personal Property Account - Non-Appropriated, other funds)
WTS Central Services
Adjustments are made to reflect each agency's anticipated share of charges from Washington Technology Solutions for the Office of Cybersecurity, state network, enterprise and small agency IT services, enterprise architecture and data management, Microsoft 365 licenses, and other items. (Business License Account - State, General Fund - State, Unclaimed Personal Property Account - Non-Appropriated, other funds)
DES Central Services
Adjustments are made to reflect each agency's anticipated share of charges from the Department of Enterprise Services for Capitol Campus costs; real estate, risk management, and small agency services; the Perry Street and Capitol Campus child care centers; enterprise applications, and other items. (Business License Account - State, General Fund - State, Unclaimed Personal Property Account - Non-Appropriated)
OFM Central Services
Adjustments are made to reflect each agency's anticipated share of charges from the Office of Financial Management for existing statewide applications, the One Washington program, and other central services. See Chapter 11 of the 2025–27 OFM Budget Instructions for allocation methodologies. (Business License Account - State, General Fund - State, Unclaimed Personal Property Account - Non-Appropriated, other funds)
GOV Central Services
Adjustments are made to reflect each agency's anticipated share of charges from the Office of the Governor for the Office of Equity. (Business License Account - State, General Fund - State, Unclaimed Personal Property Account - Non-Appropriated)
