According to the September revenue update from the state Economic and Revenue Forecast Council, tax collections over the past month came in 1.4 percent or $30.6 million higher than projected in the quarterly revenue forecast in June. Cumulative collections for the months since June’s forecast have returned $26 million or 0.4 percent over what was forecasted.
Real estate excise tax collections during the last month continued to outperform expectations returning $8 million or 8.1 percent higher than forecasted in June. Seattle-area home prices are now in a three-month consecutive increase, having grown 0.9 percent in June, making it now the strongest growth in home prices since August 2023. The food and beverage sector also saw considerable growth, up 11.9 percent. This while Seattle-area consumer price inflation is also declining, although it still outpaces the national average.
A new revenue forecast will be released later this month as the governor’s office begins to prepare its budget proposal in advance of the 2025 legislative session.