SB 5357 modifies the actuarial funding process for several Washington state public pension systems, affecting retirement plans for public employees, teachers, and law enforcement, among others. A key provision updates the long-term economic assumptions used by the state actuary for valuation purposes, effective July 1, 2025. These changes include lowering the assumed inflation rate from 3.5% to 2.75% and the investment rate of return from 8% to 7.25%. The bill also sets specific funding goals for different pension plans and suspends contribution rates for Public Employees' Retirement System Plan 1 and Teachers' Retirement System Plan 1 during the 2025-2027 and 2027-2029 fiscal biennia.
Senate Bill 5138 updates the authority of public facilities districts (PFDs) to impose lodging taxes. It revises the minimum number of lodging units required for tax applicability and introduces new tax structures for PFDs in counties with populations over 1.5 million that operate convention and trade centers. These specific PFDs can impose lodging taxes up to 7% in their largest city and 2.8% in other areas. The bill also authorizes an additional 2% lodging tax, expiring by July 2029, specifically to repay obligations related to convention center projects. PFDs imposing this additional tax must make annual payments to the state, with provisions for loans if unable to meet these payments due to debt.
SB 5161 establishes the transportation budget for Washington State for the 2025-2027 fiscal biennium, allocating funds to various state agencies for infrastructure and services. It appropriates specific amounts from designated accounts to cover employee compensation, capital projects, and operational expenses across multiple state departments. Key provisions include funding for road maintenance and programs designed to increase opportunities for women and minority-owned businesses in the transportation sector. Additionally, the bill funds a tribal electric boat grant program and supports a sustainable aviation fuel institute.
SB 5314 modifies Washington's capital gains tax by updating several provisions. It replaces an expiring business and occupation tax credit with a new, nonrefundable capital gains tax credit, designed to prevent double taxation on the same sale or exchange. The bill also clarifies definitions related to capital gains and losses, ensures consistent treatment for spouses and domestic partners, and establishes a late payment penalty waiver. Additionally, it introduces new reporting requirements for brokers and barter exchanges. These modifications are not estimated to change overall state or local tax collections.
SB 5195 adopts the capital budget for the state of Washington for the period ending June 30, 2027. This bill appropriates specific dollar amounts from various state funds to be spent on capital projects. Key provisions include funding for infrastructure improvements like the Puget Sound Regional Archives HVAC system and allocations for hosting the 2026 FIFA World Cup. It also provides grants for the development, expansion, and renovation of public and private early learning education facilities. This bill directly affects state agencies, educational institutions, and communities benefiting from these capital investments.
SB 5194 authorizes the state of Washington to issue nearly $4.7 billion in general obligation bonds. These bonds will finance various state capital projects outlined in the 2023-2025 and 2025-2027 fiscal biennia and future biennia. The proceeds are deposited into state building construction accounts and then transferred to specific accounts, including those for outdoor recreation, habitat conservation, farm and forest preservation, and early learning facilities. The state pledges its full faith and credit for repayment, using general state revenues to cover the principal and interest on these bonds.
HB 2047 phases out the Washington employee ownership program. It shortens the period during which businesses can earn tax credits for converting to worker-owned cooperatives, employee ownership trusts, or employee stock ownership plans, moving the deadline for earning credits from June 30, 2029, to June 30, 2025. The bill also makes the program's activities, such as providing technical support and referrals, contingent upon specific funding appropriations. The tax credit provisions are set to expire earlier, effectively eliminating these incentives for businesses.
House Bill 1109 modifies the regulations for public facilities districts concerning their authority to impose sales and use taxes. It extends the maximum period for collecting these taxes from 40 years to 55 years when used to finance or refinance regional centers and related parking facilities. The bill also specifies the conditions under which certain public facilities districts are eligible to impose these taxes and allows them to increase their tax rates to mitigate documented revenue losses from past legislative changes.
House Bill 1733 increases the maximum reimbursement amounts for moving and relocation expenses for individuals, businesses, farms, and nonprofit organizations displaced by government agency projects. The bill raises the general cap for reestablishing a displaced business, farm, or nonprofit to $200,000. Additionally, it sets a temporary cap of $100,000 for state agency displacements until August 1, 2030, and mandates an annual 2% inflation adjustment to these caps starting in August 2025.
HB 1473 appropriates $77,687,000 from the state's budget stabilization account to the Department of Natural Resources. These funds are specifically designated to cover fire suppression costs incurred by the department during the 2024 fire season. The bill addresses a state of emergency declared due to wildfires, aiming to support the state's response to these catastrophic events. It includes an emergency clause, making its provisions effective immediately upon enactment.
