East King Chambers Coalition Recap: Legislative Fallout, Light Rail Launch, and a County Tax Debate

The East King Chambers Coalition met on March 26 for a packed session covering the 2026 legislative aftermath, Saturday's historic Cross-Lake light rail opening, and a fast-moving King County proposal to impose a new sales tax on cities.

A "Disaster Adjacent" Legislative Session

Morgan Irwin with the Association of Washington Business delivered a blunt session debrief, calling the 2026 session "disaster adjacent" for the business community.

The headline bill is the new 9.9% income tax on all household earnings over $1 million. For S corps and LLCs, which make up the majority of Washington businesses, the tax applies to all pass-through income, not just personal distributions. A business owner who earns $5 million but reinvests $4.75 million back into the company would still owe roughly $400,000 in state tax on the reinvested portion, a sharp departure from how the federal government treats that income. AWB has sent a veto request letter to Governor Ferguson, though Irwin said he fully expects the bill to be signed. He encouraged coalition members to submit their own veto requests to build a paper trail for future legislative fights.

Other significant bills included HB 1155, which effectively nullifies non-compete agreements statewide, and the immigrant worker protection act (HB 2105), which requires employers to notify workers within five days if federal agencies request I-9 information. The session also removed tax exemptions for data center equipment refreshes (SB 6231), a move Irwin said has already halted at least two data center projects in Washington.

On the positive side, industrial insurance reform (SB 6136) could hold down rates, and a consumer digital marketing protection bill (HB 2274) curbed a wave of class-action lawsuits over extended sale promotions.

Light Rail Crosses the Lake Saturday

Katy Ricchiuto, Policy Director for Transportation Choices Coalition, outlined the opening of Sound Transit's Two Line across Lake Washington on March 28. For the first time, a single train ride will connect Redmond to Bellevue, Mercer Island, and Seattle, with transfers available south to Federal Way and north to Lynnwood. The system projects 50,000 daily boardings by 2030, with eight-minute peak frequency between the East Side and Seattle.

Ricchiuto also previewed the Sound Transit Enterprise Initiative, which addresses a $34 billion gap in the ST3 capital plan driven by post-pandemic inflation. The Sound Transit board will need to make significant decisions by May on how to bring future expansion projects, including the Issaquah and Kirkland lines, into affordability. TCC is hosting a transit town hall at Bellevue City Hall on March 30, featuring Councilmember Claudia Balducci and Mayor Angela Birney, focused on East Side impacts of those upcoming decisions.

Cities Push Back on King County Sales Tax Proposal

Robert Feldstein, executive director of the Sound Cities Association, presented on a proposed 0.1% Councilmanic sales tax through the King County Transportation District. The tax would generate roughly $100 million annually to address deteriorating county roads, including potential bridge closures and roads reverting to gravel.

The core tension: 96% of the revenue would come from cities, but the current proposal directs 100% to unincorporated King County roads. SCA is asking for 25% of the revenue to pass through to cities, along with a seat at the table on spending priorities.

Feldstein noted there is no precedent for a county TBD that collects from cities without sharing, and pointed out that cities maintain over 75% of the road miles in King County while still paying to bring formerly unincorporated roads up to city standards. The timeline is tight: the King County Council would need to act by April 10 to begin collecting by July 1, and their next scheduled meeting on this topic is April 2.

SeaTac TSA Workers Hit 2.5 Months Without Pay

Samantha St. John with the Port of Seattle reported that TSA workers at SeaTac have gone two and a half months without a paycheck due to the federal government shutdown. The Port launched a GoFundMe that raised $146,000 in its first two and a half days, distributing funds in $25 increments for gas and grocery cards. It costs $17,000 per cycle just to cover basic gas and food for the affected workforce.

SeaTac has seen only a 10% reduction in TSA staffing compared to 60-70% at airports nationwide, and wait times have remained manageable.