Senate Bill 5647 establishes a new exemption from the real estate excise tax for the sale of properties designated as "qualified affordable housing." This means that sellers of these specific types of affordable homes would not be required to pay this tax. The bill achieves this by amending the existing state law that defines what constitutes a "sale" for real estate excise tax purposes, adding this new category of exempt transactions. This policy change aims to reduce the tax burden associated with the sale of affordable housing.
HB 2543 amends Washington State's county clerk fee structure, primarily affecting individuals filing family law cases and court documents. The key provision requires a $54 fee for initial divorce, legal separation, or marriage validity petitions, with $48 directed to the state domestic violence prevention account and $6 retained by counties (minus 5% for court admin). It also adjusts fees for jury demands ($125/$250), certified document copies ($5/page), and electronic exhibits ($25), while adding reporting requirements for county domestic violence service funding. These changes directly impact court users, counties, and state programs focused on domestic violence prevention.
SB 5797 enacts a new tax on certain financial intangible assets, such as stocks and bonds, in Washington State. The bill levies a tax of $0.34 for every $1,000 of true and fair value of these assets. It primarily affects individuals and artificial persons with over $50,000,000 in taxable financial intangible assets, while exempting retirement savings, college savings, and ownership interests in private companies. Revenues generated from this tax are dedicated to the education legacy trust account to support public schools, early learning, child care, and higher education.
Senate Bill 5775 expands the authority for counties and cities to impose local sales and use taxes to fund public safety and community protection programs. Counties can impose a sales and use tax up to 0.3%, either through voter approval or by ordinance until January 1, 2028. Cities can also impose a tax, with the total combined county and city rate not exceeding 0.3%. Depending on how the tax is adopted, either one-third or all of the revenue must be used for purposes such as criminal justice, fire protection, community protection, or public safety, including behavioral health and diversion programs. The bill also specifies how these tax revenues are shared between local governments.
Senate Bill 5576 allows counties, cities, and towns in Washington State to impose a new special excise tax of up to four percent on short-term rental lodging booked through online platforms. The revenue collected from this tax must be used exclusively for essential affordable housing programs. These funds can support activities such as acquiring, rehabilitating, or constructing affordable housing, covering operations and maintenance costs for such housing, or providing rental assistance to tenants. Local governments are required to publish an annual report detailing how these tax revenues were spent.
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.
House Bill 2081 modifies Washington's business and occupation (B&O) tax structure, affecting various businesses operating in the state. It increases B&O tax rates for several business activities, including extraction, manufacturing, retail sales, and digital goods. The bill also establishes a temporary B&O tax surcharge for large companies with annual revenues exceeding $250 million. Additionally, it clarifies the B&O tax deduction available for certain business investments.
Senate Bill 5794 aims to improve how tax preferences are managed in Washington state. It implements recommendations from the state's tax preference performance review process, which evaluates the effectiveness of existing tax exemptions. The bill eliminates several tax preferences identified as obsolete or unused and clarifies the legislative intent behind others. This includes updating specific tax code sections and modifying effective or expiration dates for certain industries, such as manufacturing of seafood and dairy products.
SB 5813 aims to increase funding for public education, child care, early learning, and higher education by modifying the state's capital gains and estate taxes. Beginning January 1, 2025, an additional excise tax of 2.90 percent will be imposed on an individual's Washington capital gains that exceed $1,000,000. For the estate tax, the bill increases the applicable exclusion amount to $3,000,000 for estates of decedents dying on or after July 1, 2025. It also creates a more progressive rate structure for the estate tax by increasing the top tier rates up to 35 percent, with all revenues dedicated to the education legacy trust account.
