This bill removes the acreage limits on property tax exemptions for real or personal property owned by nonprofit organizations operating public assembly halls and meeting places. Currently, the exemption is capped at one acre for buildings and parking, and 29 acres for specific unimproved properties used for community events. By eliminating these acreage restrictions, the bill allows for a broader exemption for qualifying nonprofit properties. To remain exempt, the property must still be used exclusively for public gatherings, be available to all, and adhere to existing rules regarding pecuniary gain, with some exceptions for income used for maintenance or capital improvements. These changes would apply to taxes levied for collection in 2026 and thereafter.
SB 6129 expands Washington State's tobacco tax to include all nicotine products (excluding cigarettes and FDA-approved cessation products) by redefining "nicotine product" to cover any item containing nicotine or nicotine analogues, regardless of form. It introduces new categories like "flavored nicotine product" (defined by non-tobacco tastes/smells or cooling sensations) and creates specific tax rules for manufacturers, distributors, and retailers. The bill amends multiple tax statutes to apply these rules consistently across the supply chain, requiring businesses to pay tax based on the actual price of nicotine products sold. This directly affects businesses selling e-cigarettes, vapes, nicotine pouches, and other non-cigarette nicotine products within the state.
SB 5832 increases the arbitration fee for new motor vehicle disputes from $3 to $6, collected by dealers or lessors from consumers during vehicle sales or leases. The fee funds the new motor vehicle arbitration account in the state treasury, managed by the Department of Licensing for dispute resolution under this chapter. The bill also requires the Attorney General to annually report on account revenue and expenses. This change directly affects new vehicle dealers, lessors, and consumers purchasing or leasing vehicles in Washington. The bill amends RCW 19.118.110 to update the fee amount and reporting requirements.
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 5801 amends Washington's fuel tax structure to generate revenue for transportation infrastructure. Starting July 1, 2025, it adds a 6-cent-per-gallon tax on regular fuel and a 3-cent tax on special fuel (with an additional 3-cent tax on special fuel beginning July 1, 2027). The bill also mandates annual 2% increases to regular fuel tax rates starting July 1, 2026, and to special fuel rates starting July 1, 2028. These changes directly affect fuel licensees (businesses selling fuel) and will increase costs for consumers purchasing gasoline or special fuels. The legislation repeals outdated tax provisions and establishes new funding mechanisms to support state transportation system development.
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 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.
