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.
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.
HB 1148 exempts goods and services provided by qualifying nonprofit youth athletic facilities from Washington State's sales and use tax, effective January 1, 2026. The bill applies specifically to facilities primarily hosting competitive sports for youth under 18, operated by 501(c)(3) nonprofit organizations. This change aims to reduce costs for families and support facility accessibility, particularly in underserved communities. The exemption covers both sales transactions and the use of purchased goods/services at these facilities.
HB 2066 creates a temporary sales tax holiday for back-to-school shopping in Washington State, running from 12:00 a.m. on the second Friday of August through 11:59 p.m. on the following Sunday each year. It directly affects families with children in grades K-12 by exempting sales tax on qualifying items: clothing (including footwear, $100 or less per item), school supplies ($50 or less), and personal computers/computer accessories ($1,500 or less for home use). Businesses may opt out if they expect less than 5% of sales to come from these items, but the state will maintain a public list of exempt products. The policy aims to reduce immediate financial strain on families during back-to-school shopping, aligning with similar programs in other states.
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.
HB 1896 authorizes counties and cities in Washington to impose a 0.1% local sales and use tax, with the revenue credited against state tax obligations, to fund hiring additional commissioned law enforcement officers. The bill requires that funds be used primarily for hiring officers to reach at least the national average of officers per capita, with limited exceptions for "criminal justice purposes" like domestic violence services or homelessness programs. It also expands the Criminal Justice Training Commission’s mandate to increase the number of basic law enforcement training courses. The legislation aims to address Washington’s low law enforcement officer-to-population ratio and rising crime rates by providing a dedicated local funding mechanism.
SB 5289 exempts qualifying farm machinery, equipment, replacement parts, and related labor/services from Washington state sales and use tax for eligible farmers. Farmers must pay the tax upfront but can later apply for a full 100% refund (remittance) through the state tax department, provided they submit purchase invoices. To qualify, farmers must have had at least $10,000 in annual agricultural sales, harvested value, or estimated value from the previous tax year. This bill directly affects Washington farmers purchasing eligible equipment, reducing their upfront costs while requiring them to meet specific sales thresholds to claim the exemption.
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.
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.
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.
