Budget & Taxes (Business Taxes)

HB 1558 imposes a 0.484% tax on the gross income of radio and television broadcasters operating in Washington State. It directly affects broadcasters by allowing them to exclude revenue from network, national, and regional advertising from their taxable income - either through a standard deduction based on U.S. census data or by itemizing out-of-state audience revenue using specific signal strength measurements. The bill defines "broadcasting" broadly to include delivery via wire, satellite, or other means, and clarifies that excluded revenue must be calculated using standardized signal contour thresholds for different broadcast types. This tax change modifies existing business tax rules for broadcasters but does not alter other tax categories covered under the same chapter.

HB 2045 creates a new 1% tax on businesses with over $250 million in annual revenue in Washington starting January 2026, targeting large corporations. It also increases the tax rate for financial institutions from 1.2% to 1.9% after July 2025. The bill exempts manufacturers, farmers, and certain income types from the new tax. These changes aim to fund K-12 education, public safety, health care, and basic needs programs, as stated in the legislative findings.

This bill amends Washington State's business tax code, establishing new tax rates for various sectors: 0.275% for international investment management, 1.8% for most business activities (with a reduced 1.5% rate for small businesses and hospitals), and 0.9% for aerospace product development. It requires 16.67% of revenue from the 1.8% tax rate to be deposited into a workforce education investment account (RCW 43.79.195), which funds job training and workforce development programs. The bill does not increase funding for higher education; instead, it redirects business tax revenue to workforce education initiatives. It takes effect October 1, 2025.