10/31/2026
🌲 𝗦𝗔𝗟𝗘𝗦 𝗧𝗔𝗫, 𝗣𝗥𝗢𝗣𝗘𝗥𝗧𝗬 𝗧𝗔𝗫, 𝗧𝗜𝗠𝗕𝗘𝗥 𝗧𝗔𝗫. 𝗛𝗢𝗪 𝗠𝗔𝗡𝗬 𝗧𝗔𝗫𝗘𝗦 𝗛𝗘𝗟𝗣 𝗣𝗔𝗬 𝗙𝗢𝗥 𝗢𝗨𝗥 𝗦𝗖𝗛𝗢𝗢𝗟𝗦?
𝗣𝗔𝗥𝗧 𝟯 𝗢𝗙 𝟰 | Understanding School Funding
In our last post, we learned that Washington spent an average of $19,371 per student in the 2024–25 school year.
Now let's look at where much of that money originates.
𝗙𝗜𝗥𝗦𝗧, 𝗧𝗛𝗘𝗥𝗘'𝗦 𝗢𝗨𝗥 𝗦𝗧𝗔𝗧𝗘 𝗧𝗔𝗫𝗘𝗦.
🛒 𝗦𝗔𝗟𝗘𝗦 𝗧𝗔𝗫
Every time you purchase taxable goods or services, part of the sales tax goes to the state.
State sales tax revenue helps fund education along with other government services.
🏢 𝗕𝗨𝗦𝗜𝗡𝗘𝗦𝗦 & 𝗢𝗖𝗖𝗨𝗣𝗔𝗧𝗜𝗢𝗡 𝗧𝗔𝗫
Washington businesses pay B&O taxes, generally based on gross business revenue rather than profits.
This revenue helps support the state budget, including education.
🏠 𝗦𝗧𝗔𝗧𝗘𝗪𝗜𝗗𝗘 𝗦𝗖𝗛𝗢𝗢𝗟 𝗣𝗥𝗢𝗣𝗘𝗥𝗧𝗬 𝗧𝗔𝗫
Property owners pay a statewide tax designated to help fund public schools.
This money goes into the state general fund and is distributed through Washington's school funding system.
𝗡𝗢𝗪 𝗟𝗘𝗧'𝗦 𝗧𝗔𝗟𝗞 𝗔𝗕𝗢𝗨𝗧 𝗦𝗢𝗠𝗘𝗧𝗛𝗜𝗡𝗚 𝗘𝗦𝗣𝗘𝗖𝗜𝗔𝗟𝗟𝗬 𝗜𝗠𝗣𝗢𝗥𝗧𝗔𝗡𝗧 𝗜𝗡 𝗢𝗨𝗥 𝗥𝗨𝗥𝗔𝗟 𝗖𝗢𝗨𝗡𝗧𝗜𝗘𝗦.
🌲 𝗧𝗛𝗘 𝗧𝗜𝗠𝗕𝗘𝗥 𝗘𝗫𝗖𝗜𝗦𝗘 𝗧𝗔𝗫
Washington generally collects a 5% excise tax based on the value of timber harvested from public and private lands.
That tax is divided:
• 1 percentage point goes to the state's general fund.
• 4 percentage points go to the county where the timber was harvested, for distribution under state law.
Eligible school districts and other local taxing districts receive portions of that county revenue.
🌲 𝗦𝗧𝗔𝗧𝗘 𝗧𝗥𝗨𝗦𝗧 𝗟𝗔𝗡𝗗𝗦
Here's another important source that shouldn't be overlooked.
Washington's Department of Natural Resources manages public trust lands that generate revenue through timber sales and other activities.
Some lands were specifically established to help pay for school construction.
Other trust lands provide money for counties and local services, including schools, fire districts, libraries and roads.
𝗜𝗡 𝗢𝗧𝗛𝗘𝗥 𝗪𝗢𝗥𝗗𝗦:
Our working forests do more than provide jobs and wood products.
They can also help fund public education and essential local services.
And there are still other state taxes and revenues supporting education, including certain dedicated taxes and lottery proceeds.
𝗛𝗘𝗥𝗘'𝗦 𝗧𝗛𝗘 𝗗𝗜𝗙𝗙𝗘𝗥𝗘𝗡𝗖𝗘.
Some of this money goes into the state's general fund, where the Legislature appropriates funding for education and other services.
Other revenue is legally designated for particular purposes, such as school construction.
These funding sources overlap with the state and local school revenues we discussed in Part 1. They are not additional money to simply add on top of those percentages.
𝗦𝗢 𝗛𝗘𝗥𝗘'𝗦 𝗔 𝗤𝗨𝗘𝗦𝗧𝗜𝗢𝗡 𝗙𝗢𝗥 𝗢𝗨𝗥 𝗧𝗜𝗠𝗕𝗘𝗥 𝗖𝗢𝗠𝗠𝗨𝗡𝗜𝗧𝗜𝗘𝗦.
When decisions are made about how Washington manages its working forests, shouldn't the financial impact on schools, counties and local services be clearly explained?
And when we discuss education funding, shouldn't timber revenue be part of that conversation?
In Part 4, we'll explain why local districts continue asking voters for additional property taxes.
𝗦𝗢𝗨𝗥𝗖𝗘𝗦:
Washington Department of Revenue, State Tax Structure
https://dor.wa.gov/taxes-rates
Washington Department of Revenue, Forest Tax
https://dor.wa.gov/taxes-rates/other-taxes/forest-tax
Washington DNR, Funding Schools and Services
https://dnr.wa.gov/about-washington-dnr/funding-schools-and-services
Washington Department of Revenue, 2026 Timber Tax Distribution Changes
https://dor.wa.gov/forms-publications/publications-subject/special-notices/legislative-updates-preserving-timber-tax-distribution-school-districts-recent-school-district-levy