Budget & Taxes (Business Taxes)

in committee · Washington · Senate Jan 12, 2026

SB 5795: Reducing the state sales and use tax rate.

SB 5795 reduces Washington's state sales and use tax rate from 6.5% to 6% for most retail purchases, effective January 1, 2027. The bill directly affects all Washington residents who make retail purchases, with the largest benefit going to low- and middle-income households who pay a higher percentage of their income in sales tax under the current system. This change modifies RCW 82.08.020 to lower the tax rate while maintaining existing exemptions for items like groceries and medical supplies.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces sales tax rate from 6.5% to 6%, providing direct tax relief to low/middle-income households as explicitly stated in the bill summary.95% confidence

Sub-Topics Business Taxes Sales Tax

Track

in committee · Washington · Senate Jan 12, 2026

SB 5811: Establishing a tax on certain business activities related to surpluses generated under the zero-emission vehicle program.

SB 5811 establishes an excise tax on certain business activities related to surplus zero-emission vehicle (ZEV) credits generated by vehicle manufacturers in Washington state. The existing ZEV program requires manufacturers to sell a minimum percentage of ZEVs or acquire credits, allowing some to generate surplus credits. This bill imposes a 2% tax on the sale price of ZEV credits sold to other manufacturers, and also applies to the pooling and banking of these surplus credits. The intent is to tax these "windfall profits" and reinvest the funds into other programs that promote cleaner vehicles and support state climate goals.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 2% tax on ZEV credit sales, generating state revenue for budget management.95% confidence ✗ EnergyOpposes EnergyBill taxes ZEV credit trading (2% on sale price), adding cost to the mechanism supporting the ZEV program, which weakens the incentive for manufacturers to produce surplus credits and thus undermines the clean energy standard.80% confidence ✗ EnvironmentOpposes EnvironmentTaxing ZEV credit sales reduces market liquidity, potentially weakening the ZEV program's effectiveness in promoting EV adoption and environmental goals.85% confidence

Sub-Topics Business Taxes Sales Tax

Track

in committee · Washington · House Jan 12, 2026

HB 2082: Increasing funding to the education legacy trust account by creating a more progressive rate structure for the capital gains tax and estate tax.

HB 2082 aims to increase funding for public K-12 education, early learning, child care, and higher education in Washington state. The bill proposes to do this by modifying the state's capital gains tax and estate tax. It introduces an additional 2.90% excise tax on an individual's Washington capital gains that exceed $1,000,000, effective January 1, 2025. For the estate tax, it increases the exclusion amount to $3,000,000 for estates of decedents dying on or after January 1, 2025, and intends to raise the top-tier rates up to 35 percent. Revenues generated from these changes would be dedicated to the education legacy trust account.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill imposes 2.90% capital gains tax on gains >$1M to fund education, creating progressive tax structure for public service funding.95% confidence ✓ EducationSupports EducationBill explicitly increases education funding via new capital gains/estate taxes for K-12, early learning, and higher education.95% confidence

Sub-Topics Business Taxes Sales Tax Early Childhood K-12 Education School Funding

Track

in committee · Washington · House Jan 12, 2026

HB 1806: Ensuring that commercial fishing revenue benefits communities most dependent on the industry.

HB 1806 redirects 50% of commercial fishing landing tax revenue to the cities or counties where fish are first landed, primarily benefiting rural coastal communities in southwest Washington that rely heavily on the fishing industry. The bill amends tax collection rules to ensure this portion - previously going to the state general fund - directly supports local public safety and infrastructure needs in these communities. Key provisions specify that 50% of the "landing tax" paid by commercial fishers on certain species (like salmon) must be distributed locally, while smaller percentages fund state conservation accounts and the general fund. This policy change takes effect January 1, 2027, aiming to align tax revenue with community needs.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects existing tax revenue to fund local public safety and infrastructure in rural communities, aligning with fund allocation for essential services.95% confidence ✓ TransportationSupports TransportationRedirects funds to local infrastructure needs, directly supporting transportation infrastructure in coastal communities reliant on fishing industry.85% confidence

Sub-Topics Business Taxes Sales Tax State Budget

Track

passed · Washington · Senate Jan 12, 2026

SB 5458: Concerning newspapers and eligible digital content.

Senate Bill 5458 updates tax exemptions for businesses involved in newspaper and digital content publishing. The bill directly affects entities that primarily derive their income from printing or publishing newspapers, or from publishing specific types of digital content. It defines "eligible digital content" as electronic publications issued at least monthly, featuring written content with identified authors or sources. Businesses claiming this tax exemption must file an annual performance report, and the exemption amount may be reduced by certain expenditures.

Topics ✓ Budget & TaxesSupports Budget & TaxesUpdates tax exemptions for newspaper/digital publishers, providing tax relief to qualifying businesses under Budget & Taxes policy.95% confidence

Sub-Topics Business Taxes Tax Incentives

Track

in committee · Washington · House Jan 12, 2026

HB 1702: Authorizing counties to impose a public utility tax.

HB 1702 would allow Washington counties to impose a 3% tax on utilities (like electricity, gas, water, and sewer services) operating in unincorporated areas. Utilities would add this tax to customer bills and show it separately, while counties must use 0.2% of the revenue for low-income utility assistance. The bill permits counties to exempt business customers (e.g., factories, data centers) but not residential customers unless businesses are also exempt. It defines "utility" broadly to include major service providers and ensures the tax doesn’t overlap with existing state-level utility taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 3% utility tax with mandatory 0.2% revenue allocation for low-income assistance, advancing fiscal responsibility and funding essential public service.95% confidence

Sub-Topics Business Taxes Sales Tax

Track

in committee · Washington · Senate Jan 12, 2026

SB 5063: Providing incentives to improve freight railroad infrastructure.

SB 5063 creates a tax credit program for Washington state rail infrastructure improvements. It provides a 50% tax credit against state taxes for eligible rail operators (including class II/III railroads, port/city-owned rail, and industrial spur owners) on qualifying maintenance, new construction, and modernization costs. Credits are capped at $500,000 per company annually and $8 million statewide, with unused credits carryable for up to five years or transferable to other taxpayers. The bill directly affects smaller rail carriers and industrial facilities by reducing costs for upgrading tracks, bridges, and safety infrastructure to support modern freight needs.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates tax credit reducing state revenue for rail operators; aligns with 'oppose' indicators of corporate tax breaks over public funding.90% confidence ✓ TransportationSupports TransportationProvides 50% tax credits for rail infrastructure maintenance, construction, and modernization, directly funding transportation infrastructure improvements per bill title and summary.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Bridges Freight Rail

Track

in committee · Washington · House Jan 12, 2026

HB 2083: Modernizing the excise taxes on select services and nicotine products and requiring certain large businesses to make a one-time prepayment of state sales tax collection.

HB 2083 proposes to update Washington's tax code by expanding the retail sales tax to include select services and new nicotine products, and by requiring a one-time prepayment of state sales tax collection from certain large businesses. The bill specifically extends retail sales tax to computer-related services and removes exemptions for digital automated services. It also aims to apply existing taxes on tobacco products to new and emerging nicotine products that are currently exempt. The legislation states its intent to generate revenue for public schools, health care, and social services.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax base to computer services/nicotine products, closes digital service exemptions, increases state revenue through updated tax code.90% confidence

Sub-Topics Business Taxes Sales Tax

Track

in committee · Washington · House Jan 12, 2026

HB 1564: Supporting employers providing child care assistance to employees by establishing a business and occupation and public utility tax credit.

HB 1564 creates a 100% tax credit for Washington employers that provide child care assistance to employees, directly affecting eligible businesses. The credit covers 100% of costs for two types of assistance: (1) employer-paid portions of employee wages used for child care expenses (like tuition), and (2) costs for in-house child care facilities. Employers can claim the credit against business and occupation taxes (Chapter 82.04 RCW) or public utility taxes (Chapter 82.16 RCW), but not both for the same costs. The credit is available from January 1, 2026, through December 31, 2037, with a final expiration date of January 1, 2038.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 100% tax credit against business taxes for employer child care costs, reducing tax liability and incentivizing employee support, aligning with tax relief policies.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax credit for employer-provided child care, expanding employee benefits and supporting work-life balance for workers.95% confidence

Sub-Topics Business Taxes Tax Credits

Track

in committee · Washington · House Jan 12, 2026

HB 1981: Imposing a local option tax on the sale or transfer of renewable energy facilities.

HB 1981 allows Washington counties to impose a 3% local tax on the sale or transfer of renewable energy facilities (like wind and solar farms) if approved by voters in a county election. The tax would apply to the seller of the facility, with proceeds becoming general county revenue. It aims to direct income from these projects back to rural communities where they operate, addressing concerns about limited local economic benefits. Counties must hold a vote to implement this tax, which would take effect January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new local tax on renewable energy facility sales to fund county general revenue, increasing local fiscal resources and directing project income to communities.95% confidence ✓ EnergySupports EnergyBill taxes renewable energy facility sales to fund local communities, supporting rural economic benefits from clean energy projects without restricting development.95% confidence

Sub-Topics Business Taxes Sales Tax Renewable Energy Solar Tags Rural Communities

Track