This bill adds a new section to chapter 82.08 RCW that requires the Department of Revenue to reduce the state retail sales and use tax rate set in RCW 82.08.050 if the legislature levies an income tax or a tax on individual earnings. The reduction must be "a commensurate amount relative to the projected revenue increase" from that income tax. The bill also includes legislative findings stating the intent to reduce the state sales tax to provide relief and to mitigate harm from an income tax or tax on individual earnings. Legally, this is a statutory amendment that creates a procedural obligation on the Department of Revenue to adjust the state sales tax rate when the legislature enacts the specified income tax; it is not a new crime and does not change penalties. The affected agency named is the Department of Revenue, and the trigger for the requirement is the legislature levying an income tax or tax on individual earnings. The bill is identified as House Bill 2167 (H-2599.1), 69th Legislature, 2026 Regular Session, prefiled 12/18/25, read first time 01/12/26, and referred to the Finance Committee. The text provided does not define key terms such as "income tax," "tax on individual earnings," "commensurate amount," or "projected revenue increase," and it does not specify how to calculate the reduction, the timing or deadline for implementing it, whether the reduction affects only the state portion of sales tax or also local sales/use taxes, or what form of legislative action (statute, voter approval, etc.) constitutes "levying" the tax. These implementation details and procedures are not included in the extracted facts.

If the Legislature enacts an income tax or a tax on individual earnings, the bill would require the Department of Revenue to lower the state retail sales and use tax rate by an amount tied to the projected revenue from that new tax. In practice this means the state sales tax rate would be cut to offset the expected income‑tax revenue increase, reducing state sales tax receipts roughly in line with the projected new income tax revenue and shifting the mix of how the state raises money; the Department of Revenue would take on the task of implementing that rate change. Those most affected are the Department of Revenue (new duty to calculate and apply the cut), the Legislature (which triggers the requirement by levying an income tax), and Washington households, businesses, and employers (who would face a lower state sales tax rate if the trigger occurs). Important details are left unspecified in the extracted text—how to calculate a “commensurate amount,” the timing and process for the reduction, and whether local sales taxes are affected—so the speed, scope, and practical impact could vary depending on those unresolved implementation choices.