Ballot of 1st Impression. Carbon Tax in the West.

Washington state is proposing a new energy tax? Yes, voters will vote on Initiative 732

What is the dealw ith this 1st in the nation carbon tax, how does it work?

• Initial rate of $15 per metric ton of carbon emissions
• Rises to $25 per ton the subsequent year
• Continues to rise by inflation plus 3.5% each year thereafter
• Capped at an inflation-adjusted $100 (in 2016 dollars)
• Corresponding tax decreases of:
  • The sales tax rate would be phased down from 6.5 to 5.5% over two years
  • Gross receipts tax rate on manufacturing would decline from 0.484%to 0.01%

Tax Policy Foundation | Top State Tax Ballot Initiatives to Watch in 2016