Budget & Taxes (Sales Tax)

signed · Washington · House Apr 24, 2025

HB 1791: Increasing the flexibility of existing funding sources to fund public safety and other facilities by modifying the local real estate excise tax.

HB 1791 aims to increase the flexibility of existing funding sources for public safety and other facilities by modifying the local real estate excise tax. The bill amends provisions within the real estate excise tax law, specifically updating language related to the definition of a "sale." These updates include minor textual changes to timeframes, such as how "controlling interest" transfers are determined over a 36-month period and the 60-day period for tax payment on certain property transfers. This legislation primarily affects local governments and entities involved in real estate transactions subject to this tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies real estate excise tax to increase flexibility of existing funds for public safety facilities, strengthening fiscal management for public services.90% confidence

Sub-Topics Sales Tax

in committee · Washington · Senate Jan 12, 2026

SB 5591: Creating a sales and use tax remittance program for affordable housing.

SB 5591 creates a local sales and use tax reimbursement program for developers building affordable housing projects. It allows cities or counties to adopt programs that reimburse developers for sales taxes paid on construction materials, provided the project includes at least 50% units affordable to low-income households (costing ≤30-38% of income) for 40 years. Developers must apply to local governments, meet strict affordability and timeline requirements (completion within 3 years), and maintain affordability for the full 40-year period. The program applies only to projects meeting Washington’s defined "affordable housing" standards and requires local government approval before implementation.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax reimbursement for affordable housing developers, providing tax relief to incentivize low-income housing development and fund essential housing programs.95% confidence ✓ HousingSupports HousingBill creates tax reimbursement program for developers building affordable housing (50% units ≤30-38% income for 40 years), directly funding and advancing affordable housing development.95% confidence

Sub-Topics Sales Tax Tax Incentives Affordable Housing Housing Finance Property Taxes

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 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

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

Track

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

Track

in committee · Washington · House Jan 12, 2026

HB 1965: Modifying the tax preferences for precious metal bullion and monetized bullion.

HB 1965 repeals a Washington State tax provision (RCW 82.04.062) that previously excluded sales of precious metal bullion and monetized bullion from certain tax calculations. This change directly affects businesses and individuals buying or selling these items, as their transactions will now be subject to standard sales tax rules. The bill takes effect October 1, 2025, and explicitly states it does not impact existing tax liabilities or ongoing proceedings under the repealed law.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals tax exclusion for precious metal bullion sales, closing a tax loophole and subjecting transactions to standard sales tax, aligning with 'closing tax loopholes' indicator.95% confidence

Sub-Topics Sales Tax

Track

in committee · Washington · House Jan 12, 2026

HB 1318: Providing a sales and use tax exemption for children's diapers.

HB 1318 exempts children's diapers from Washington State's sales and use taxes, directly benefiting parents and caregivers who purchase diapers for infants and toddlers who cannot control bladder or bowel movements. The bill adds specific exemptions to the state's tax code, removing diapers from both sales tax (RCW 82.08) and use tax (RCW 82.12) requirements. It defines "diaper" as reusable or disposable absorbent garments marketed for young children with incontinence needs. The exemption takes effect January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts diapers from sales/use tax, providing tax relief for middle/lower income families purchasing a necessity, aligning with tax relief indicators.95% confidence

Sub-Topics Sales Tax Tax Incentives

Track

in committee · Washington · House Jan 12, 2026

HB 1436: Incentivizing cities and counties to increase employment of commissioned law enforcement officers.

HB 1436 allows Washington cities and counties to impose a 0.10% sales tax to fund additional commissioned law enforcement officers. Local governments must use the revenue to hire more officers if their officer-to-population ratio is below the national average, or for other criminal justice programs (like domestic violence services or homelessness initiatives) if their ratio is already above average. The state collects the tax and returns the funds directly to the local jurisdiction. This bill aims to address Washington’s low ranking in law enforcement staffing per capita and high crime rates by creating a dedicated funding mechanism for local governments.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 0.10% sales tax to fund law enforcement hiring, directly allocating tax revenue to public safety programs under fiscal management.95% confidence ✓ Criminal JusticeSupports Criminal JusticeBill funds additional law enforcement officers and related criminal justice programs (e.g., domestic violence services) through dedicated tax revenue, directly advancing resource allocation in criminal justice.95% confidence

Sub-Topics Sales Tax Domestic Violence Law Enforcement

Track

in committee · Washington · House Jan 12, 2026

HB 1641: Amending the definition of timberland for purposes of determining the real property excise tax for a governmental entity.

HB 1641 amends Washington State's definition of "timberland" for real property excise tax purposes. It expands the definition to include land transferred to governmental entities that manage it like designated forestland under state law, in addition to land classified under existing timberland rules. This change means sales of timberland (including certain government-managed land) will be taxed at a flat 1.28% rate, rather than potentially higher rates for other property types. The bill directly affects property sellers and governmental entities managing timberland, ensuring consistent tax treatment for qualifying land sales.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands timberland definition to apply 1.28% tax rate, preventing higher taxes on government-managed forestland sales, promoting fiscal consistency.90% confidence

Sub-Topics Sales Tax

Track