Overview
- SB 6346 cleared the Senate on a 27–22 vote, with three Democrats joining all Republicans in opposition, and now heads to the House.
- The governor says he will not sign the bill as written, seeking roughly $1 billion for broader small‑business B&O relief, a major expansion and 30% increase to the Working Families Tax Credit, diaper sales‑tax exemptions, and two annual sales‑tax holidays.
- The measure levies a 9.9% tax on household income above $1 million starting in 2028, affecting fewer than 1% of households (about 30,000 taxpayers) and projected to raise about $3.7 billion annually.
- Adopted amendments expand small‑business relief by raising the B&O exemption threshold to $300,000 in 2029, add sales‑tax exemptions for certain hygiene items in 2029, and roll back part of a contested services sales‑tax expansion beginning in 2030.
- Revenue would help fund public defense, expand the Working Families Tax Credit, and support education and health care, while opponents warn of constitutional challenges, possible voter referral, and harm to investment and startups.