Washington Court Orders DRS to Repay $120 Million to Teachers’ Retirement Accounts
This article is for voter education only. The LEOFF 1 Coalition Board members and Staff does not support or oppose Initiative 645 and does not recommend either a YES or NO vote.
Washington voters will decide Initiative Measure No. IP26-645 in the November 3, 2026 General Election.
Why Is Initiative 645 on the Ballot?
In 2026, the Washington Legislature passed ESSB 6346, Chapter 238, Laws of 2026, creating a new Washington individual income tax.
Beginning January 1, 2028, the law imposes a 9.9% tax on Washington taxable income after the applicable $1 million standard deduction and other deductions and adjustments provided by law.
Initiative 645 asks voters whether that new income tax should be repealed and whether broader restrictions should be placed on state and local individual income taxes.
What Does a YES Vote Mean?
A YES vote means you are voting to approve Initiative 645.
If Initiative 645 passes, it would:
Repeal the new 9.9% individual income tax.
Prohibit state and local governments from imposing taxes on individual income or the receipt of individual income.
Prohibit certain taxes measured by an individual’s income.
Establish definitions of “income” and “individual” for purposes of the initiative.
In Simple Terms
YES = Approve Initiative 645 and repeal the new 9.9% individual income tax.
What Does a NO Vote Mean?
A NO vote means you are voting against Initiative 645.
If Initiative 645 does not pass, the individual income-tax law enacted by the Legislature would remain in effect, unless it is later changed by the Legislature or affected by a court decision.
In Simple Terms
NO = Do not approve Initiative 645. The new individual income-tax law remains in place.
Could the $1 Million Deduction Change in the Future?
Yes.
The current law provides a $1 million standard deduction, along with statutory inflation adjustments.
However, the $1 million amount is established by state law. A future Legislature could pass another law changing the deduction or other provisions of the tax.
A change would require new legislative action.
What About LEOFF 1 and Other Public Pensions?
This is an important question for retired public employees.
When the Legislature passed ESSB 6346, it also amended several public-pension statutes. The Legislature’s Final Bill Report states that these changes specify that pension income is not exempt from the new tax.
That does not mean every LEOFF 1 retiree would automatically pay a 9.9% tax on their pension.
The law provides a $1 million standard deduction, as well as other deductions and adjustments. Whether someone actually owes the tax depends on that person’s taxable income and the other provisions of the law.
Important for LEOFF 1 Members
Pension income is not automatically exempt under the new law.
But:
That is not the same as saying every LEOFF 1 pension check will be taxed at 9.9%.
Whether a retiree owes the tax depends on the person’s individual tax situation and the law in effect at that time.
Before You Vote
Initiative 645 involves more than whether to keep or repeal the new 9.9% individual income tax. It also addresses broader restrictions on state and local taxes on individual income.
Members are encouraged to read the official Washington State Voters’ Pamphlet, the complete text of Initiative 645, the official explanatory statement and fiscal impact statement, and ESSB 6346 before voting.
The LEOFF 1 Coalition organization, board members and staff provides this information solely for voter education. We do not endorse, support or oppose Initiative 645 and do not recommend either a YES or NO vote. Each voter should review the information and make their own informed decision.