Budget & Taxes (Business Taxes)

in committee · Washington · Senate Jan 12, 2026

SB 5711: Defining the rental or lease of individual storage space at self-service storage facilities as a retail transaction for the imposition of business and occupation and sales and use taxes.

SB 5711 reclassifies the rental of individual storage units at self-service facilities as a "retail transaction" for tax purposes under Washington State law. This means self-storage businesses must now collect and remit sales tax on storage rentals, treating them like other retail sales instead of exempt services. The bill amends existing tax code (RCW 82.04.050) to explicitly include storage rentals under the definition of taxable "retail sales," aligning them with other similar services. It directly affects self-storage operators across Washington who will now be required to collect sales tax on monthly or short-term storage unit leases.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax base by taxing storage rentals as retail sales, closing prior exemption under RCW 82.04.050, aligning with fiscal responsibility indicators.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Washington · House Jan 12, 2026

HB 1778: Sharing state sales tax revenues with local governments and not increasing the state or local sales tax rate.

HB 1778 requires Washington State to transfer 20% of monthly sales tax revenues collected to a dedicated local sales tax account starting January 1, 2026. This directly affects local governments (counties, cities, transportation authorities, and other local taxing jurisdictions) that collect sales taxes under state law. The bill mandates monthly transfers of these funds, with distributions made to local entities in proportion to their previous month's sales tax collections. It does not change existing sales tax rates but ensures a consistent revenue share from state collections. The bill amends existing law to implement this monthly distribution process beginning in 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesTransfers 20% of state sales tax revenue to local governments, increasing their funding without raising tax rates. This strengthens local budgeting and fiscal management by providing dedicated revenue streams.90% confidence

Sub-Topics Business Taxes Sales Tax State Budget

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in committee · Washington · Senate Jan 12, 2026

SB 5024: Providing a tax exemption for the first 20,000 gallons of wine sold by a winery in Washington.

SB 5024 exempts the first 20,000 gallons of table wine or cider sold annually by Washington wineries from most state wine taxes. It applies specifically to small wineries (defined as those with under 6,000 gallons in the prior year) and reduces their tax rate on the first 20,000 gallons to $0.0528 per liter, while exempting them from other taxes under the section. The bill aims to support small wineries facing economic challenges like recessions, wildfires, and pandemics, which have led to many closures. This tax relief is intended to help these businesses grow, retain jobs, and maintain tourism and community contributions. The exemption only applies to the first 20,000 gallons; standard taxes apply to all additional sales.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts small wineries from wine taxes on first 20k gallons, reducing tax burden to support economic resilience.95% confidence

Sub-Topics Business Taxes Tax Incentives

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in committee · Washington · House Jan 12, 2026

HB 1417: Establishing an embodied carbon tax on cigarettes.

HB 1417 imposes a new $0.0015 per cigarette tax based on the carbon emissions from cigarette production ("embodied carbon"), starting October 1, 2025. The tax increases every five years beginning October 2030 by 25% plus the annual inflation rate (measured by CPI), rounded to the nearest cent. This tax applies to cigarette manufacturers or sellers who collect it at the point of sale, with all revenue deposited into the state's general fund. The bill directly affects cigarette producers and retailers by adding this carbon-based tax to existing cigarette excise taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new carbon-based cigarette tax, directing revenue to general fund, increasing state tax revenue and budget resources.95% confidence ✓ EnvironmentSupports EnvironmentTax on cigarette production carbon emissions incentivizes emission reduction, directly advancing environmental protection through carbon pricing.90% confidence

Sub-Topics Business Taxes State Budget Climate Change

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in committee · Washington · House Jan 12, 2026

HB 2046: Creating fairness in Washington's tax by imposing a tax on select financial intangible assets.

HB 2046 imposes a tax of $8 for every $1,000 in market value on Washington residents' financial intangible assets (like stocks, bonds, and mutual funds) exceeding $50 million in value. It exempts assets such as private company ownership, pensions, retirement accounts, and the first $50 million of holdings. Revenue from this tax will fund K-12 schools, early learning programs, child care, and higher education through the Education Legacy Trust Account. The bill targets high-value financial investments held by residents while excluding common retirement and private business assets.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes targeted tax on high-value financial assets to fund K-12 schools, early learning, and higher education through dedicated trust account, aligning with funding public services and closing tax loopholes for wealthy.95% confidence ✓ EducationSupports EducationBill imposes tax on high-value financial assets to fund K-12 schools, early learning, child care, and higher education via Education Legacy Trust Account.95% confidence

Sub-Topics Business Taxes Early Childhood K-12 Education

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in committee · Washington · House Jan 12, 2026

HB 1895: Establishing a business and occupation tax credit for small business employers providing educational assistance to employees.

HB 1895 creates a tax credit for Washington small businesses (50 or fewer employees) that pay for employees' educational expenses at accredited institutions. The credit covers 100% of costs for tuition, books, and on-campus lodging related to associate degrees, apprenticeships, or technical programs, up to $20,000 per business annually. Businesses must apply through the state department, and unused credits can be carried forward for one year. The credit expires January 1, 2037 for the benefit amount and January 1, 2038 for the entire provision.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for small businesses, reducing their tax burden and incentivizing educational investment, aligning with tax relief and workforce development goals.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credit for employer-funded employee education, expanding workforce development opportunities and enhancing employment standards through skill-building.85% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Apprenticeships Tags Small Business

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in committee · Washington · House Jan 12, 2026

HB 2023: Establishing a work group to study the taxation of investment income under RCW 82.04.4281.

HB 2023 creates a work group to study how investment income is taxed under Washington's business tax code (RCW 82.04.4281), following a court decision that created uncertainty about whether investment income qualifies for a tax deduction. The bill temporarily blocks the Department of Revenue from taxing investment income for non-financial businesses (e.g., individuals, arts organizations, or pension funds) until July 2026, while requiring the work group to provide legislative recommendations by November 2025. The work group includes representatives from investment firms, arts organizations, pension funds, business associations, and accounting groups. It expires July 1, 2026, for the tax freeze and November 30, 2026, for the work group.

Topics ✗ Budget & TaxesOpposes Budget & TaxesTemporarily blocks taxation of investment income for non-financial businesses, reducing potential tax revenue and limiting fiscal accountability.95% confidence

Sub-Topics Business Taxes Pensions

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in committee · Washington · House Jan 12, 2026

HJR 4206: Amending the Constitution to require a two-thirds majority vote of the legislature to raise taxes.

HJR 4206 proposes amending Washington's Constitution to require a two-thirds majority vote in both the House and Senate to raise taxes. It defines "raises taxes" broadly as any legislative action increasing state tax revenue deposited into any fund or account, regardless of where the funds go. The amendment would prevent tax increases from passing with a simple majority, requiring broader legislative consensus. It also maintains the existing process allowing tax increases to be referred to voters via referendum. This bill directly affects how the legislature passes tax-related measures.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRestricts tax increases by mandating two-thirds legislative approval, limiting ability to raise revenue per bill's explicit definition of tax actions.95% confidence

Sub-Topics Business Taxes Revenue State Budget

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signed · Washington · House Mar 20, 2026

HB 1210: Concerning targeted urban area tax preferences.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax incentives for clean energy businesses via extended tax preferences, directly modifying tax policy to promote targeted economic development.95% confidence ✓ EnergySupports EnergyBill explicitly includes clean energy businesses (nuclear, hydrogen, storage) in tax incentives and allows project extensions, directly promoting renewable energy infrastructure investment.95% confidence ✓ EnvironmentSupports EnvironmentBill incentivizes clean energy businesses (nuclear, green hydrogen, energy storage) via tax extensions, directly promoting environmental protection through clean energy development.90% confidence

Sub-Topics Business Taxes Tax Incentives Energy Storage Renewable Energy Transmission

signed · Washington · House May 20, 2025

HB 2081: Modifying business and occupation tax surcharges, rates, and the advanced computing surcharge cap, clarifying the business and occupation tax deduction for certain investments, and creating a temporary business and occupation tax surcharge on large companies.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases B&O tax rates for multiple sectors and adds temporary surcharge on large companies ($250M+ revenue), generating additional state revenue to support budget priorities.95% confidence

Sub-Topics Business Taxes Fees & Licensing