HB 1210 modifies existing targeted urban area tax preferences, primarily to include "clean energy transformation businesses." The bill defines these businesses as those involved in nuclear operations, green or renewable hydrogen production equipment, or high-voltage energy storage equipment. It allows cities to grant these specific businesses up to two additional 24-month extensions to complete projects under the tax preferences, beyond the standard extension period. Additionally, the bill updates the requirements for receiving an exemption, emphasizing verification of community workforce agreements, post-construction family living wage jobs, and compliance with prevailing wage and apprentice standards during construction.
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.
HB 1340 would exempt most prepared food from Washington's sales tax, directly affecting restaurants, food trucks, and businesses selling meals prepared for immediate consumption. The bill defines "prepared food" as food sold heated, with utensils provided (like plates or cutlery), or mixed by the seller (excluding simple cuts or raw ingredients needing home cooking). It excludes soft drinks, bottled water, dietary supplements, alcoholic beverages, tobacco, and cannabis from the exemption. This change would reduce sales tax for qualifying food items sold by businesses meeting the defined criteria, but not for packaged snacks, drinks, or other excluded products.
HB 1839 imposes a 1.22% surcharge on select advanced computing businesses with global revenue exceeding $25 billion annually, targeting large tech firms engaged in software, cloud services, or platforms like social media. The tax applies to affiliated groups (e.g., parent companies and subsidiaries), with exemptions for hospitals and healthcare providers. Revenue generated will fund workforce programs, including expanding the Washington College Grant for families earning up to 70% of median income, increasing STEM teacher training, growing in-state college seats, and supporting student work-study in STEM fields. The bill aims to address a projected 600,000-worker shortfall by directing funds to education and training aligned with high-demand sectors like technology and healthcare.
SB 5518 authorizes cities with over 120,000 residents in high-population counties (≥1.5 million) and at least 25% industrial/warehousing zoning to impose a new 0.3% sales tax. The tax, collected by the state at no cost to the city, must be used to improve community vitality in areas negatively impacted by sales tax sourcing laws. Cities must hold public meetings, maintain a budget transparency webpage, and conduct surveys before implementing the tax, which can only begin after July 1, 2025, and last up to 20 years. This bill directly affects specific industrial/warehousing communities near Seattle/Tacoma ports, aiming to offset fiscal challenges from existing tax structures.
HB 1373 allows rural counties in Washington to impose a 0.01% local sales tax, which is fully deducted from the state sales tax they would otherwise pay. The funds collected must be used solely to administer senior citizens programs established under state law (RCW 36.39.060). This applies only to counties defined as "rural" (population density under 100 people per square mile or smaller than 225 square miles), with the state handling tax collection at no cost to the county. The bill takes effect July 1, 2025.
HB 1995 removes multiple existing tax exemptions and credits for specific industries across Washington State's tax code. It repeals provisions that previously exempted aluminum smelters, silicon smelters, semiconductor manufacturers, and certain research facilities from paying sales or use taxes on materials, energy, or equipment. The bill does not create new tax breaks but eliminates these targeted exemptions, affecting businesses in those sectors that currently benefit from them. This change applies to numerous specific statutes covering exemptions for energy use, manufacturing inputs, and facility operations. The summary focuses on the repeal of these provisions, not new policy changes.
HB 1506 would require state-chartered credit unions in Washington that merge with a commercial bank to pay a business and occupation tax starting October 1, 2025. Currently, these credit unions are exempt from this tax under state law, but the bill removes that exemption for any credit union that merges with a bank regulated by the Department of Financial Institutions. The tax would equal 1.2% of the credit union's gross income, applying only to merged entities. This change directly affects credit unions that choose to merge with commercial banks, shifting their tax obligation from exemption to a standard 1.2% rate.
HB 1986 would impose a new 5.9% tax on motor vehicle sales to businesses that use the vehicles for retail car rentals, directly affecting car rental companies purchasing vehicles for their fleets. This tax applies specifically to vehicles bought for rental operations (not individual car sales) and must be paid by the rental company at the time of purchase. Revenue from this tax will fund the state’s multimodal transportation account. The bill amends existing tax law to create this targeted tax, with the rate applying to sales occurring on or after October 1, 2025.
House Bill 2084 seeks to increase state funding for K-12 education, health care, and public safety by modifying certain tax preferences. The bill repeals an existing tax exclusion, making sales of precious metal bullion and monetized bullion subject to state taxes. Additionally, it clarifies that businesses operating self-service storage facilities are subject to the state's business and occupation (B&O) tax for renting or leasing individual storage spaces. These changes aim to generate revenue for the specified public services.
