Budget & Taxes (Business Taxes)

in committee · Washington · House Jan 12, 2026

HB 1340: Exempting prepared food from sales tax.

HB 1340 would exempt most prepared food from Washington's sales tax, directly affecting restaurants, food trucks, and businesses selling meals prepared for immediate consumption. The bill defines "prepared food" as food sold heated, with utensils provided (like plates or cutlery), or mixed by the seller (excluding simple cuts or raw ingredients needing home cooking). It excludes soft drinks, bottled water, dietary supplements, alcoholic beverages, tobacco, and cannabis from the exemption. This change would reduce sales tax for qualifying food items sold by businesses meeting the defined criteria, but not for packaged snacks, drinks, or other excluded products.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempting prepared food from sales tax provides direct tax relief for consumers and businesses, aligning with support indicators for tax policy reform.92% confidence

Sub-Topics Business Taxes Sales Tax

Track

in committee · Washington · House Jan 12, 2026

HB 1839: Increasing the investments in our workforce by amending the advanced computing surcharge.

HB 1839 imposes a 1.22% surcharge on select advanced computing businesses with global revenue exceeding $25 billion annually, targeting large tech firms engaged in software, cloud services, or platforms like social media. The tax applies to affiliated groups (e.g., parent companies and subsidiaries), with exemptions for hospitals and healthcare providers. Revenue generated will fund workforce programs, including expanding the Washington College Grant for families earning up to 70% of median income, increasing STEM teacher training, growing in-state college seats, and supporting student work-study in STEM fields. The bill aims to address a projected 600,000-worker shortfall by directing funds to education and training aligned with high-demand sectors like technology and healthcare.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill imposes new tax on large tech firms to fund workforce programs, directly increasing state revenue allocation for public services per summary.95% confidence ✓ EducationSupports EducationBill allocates surcharge revenue to expand Washington College Grant, directly increasing higher education access for low-income families.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentFunds workforce programs including Washington College Grant expansion for low-income families, directly advancing employment opportunities and education access per bill summary.95% confidence

Sub-Topics Business Taxes Fees & Licensing State Budget Higher Education Teachers

Track

in committee · Washington · Senate Jan 12, 2026

SB 5340: Exempting permanently from sales and use tax bottled water, prepared food, and clothing.

SB 5340 would permanently exempt bottled water, prepared food, and clothing from Washington State's sales and use tax. The bill defines "prepared food" as items sold heated, with utensils provided, or mixed by the seller (excluding basic bakery items or raw ingredients), and specifies bottled water as calorie-free with minimal additives. It excludes soft drinks, dietary supplements, alcoholic beverages, tobacco, and cannabis from the exemption. This policy change, if enacted, would eliminate tax on these specific consumer goods for all Washington residents and businesses selling them.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts bottled water, prepared food, and clothing from sales tax, reducing state revenue and weakening tax base.85% confidence

Sub-Topics Business Taxes Sales Tax

Track

in committee · Washington · Senate Jan 12, 2026

SB 5518: Authorizing funding tools to mitigate the impact of sales tax sourcing in certain cities that host industrial and warehousing industries.

SB 5518 authorizes cities with over 120,000 residents in high-population counties (≥1.5 million) and at least 25% industrial/warehousing zoning to impose a new 0.3% sales tax. The tax, collected by the state at no cost to the city, must be used to improve community vitality in areas negatively impacted by sales tax sourcing laws. Cities must hold public meetings, maintain a budget transparency webpage, and conduct surveys before implementing the tax, which can only begin after July 1, 2025, and last up to 20 years. This bill directly affects specific industrial/warehousing communities near Seattle/Tacoma ports, aiming to offset fiscal challenges from existing tax structures.

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes new 0.3% sales tax to fund community vitality improvements in industrial areas affected by tax sourcing laws, directly advancing fiscal management for targeted communities.95% confidence

Sub-Topics Business Taxes Sales Tax

Track

in committee · Washington · House Jan 12, 2026

HB 1373: Imposing a local sales tax wholly credited against the state sales tax to support programs for senior citizens.

HB 1373 allows rural counties in Washington to impose a 0.01% local sales tax, which is fully deducted from the state sales tax they would otherwise pay. The funds collected must be used solely to administer senior citizens programs established under state law (RCW 36.39.060). This applies only to counties defined as "rural" (population density under 100 people per square mile or smaller than 225 square miles), with the state handling tax collection at no cost to the county. The bill takes effect July 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes minimal 0.01% local tax to fund senior programs, directly allocating revenue to essential services per RCW 36.39.060.95% confidence

Sub-Topics Business Taxes Sales Tax Tags Rural Communities Seniors

Track

in committee · Washington · House Jan 12, 2026

HB 1995: Concerning tax preferences.

HB 1995 removes multiple existing tax exemptions and credits for specific industries across Washington State's tax code. It repeals provisions that previously exempted aluminum smelters, silicon smelters, semiconductor manufacturers, and certain research facilities from paying sales or use taxes on materials, energy, or equipment. The bill does not create new tax breaks but eliminates these targeted exemptions, affecting businesses in those sectors that currently benefit from them. This change applies to numerous specific statutes covering exemptions for energy use, manufacturing inputs, and facility operations. The summary focuses on the repeal of these provisions, not new policy changes.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals industry tax exemptions, closing loopholes to increase state revenue and promote fiscal responsibility per bill summary.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

Track

in committee · Washington · House Jan 12, 2026

HB 1506: Imposing a business and occupation tax on state-chartered credit unions that merge with a commercial bank.

HB 1506 would require state-chartered credit unions in Washington that merge with a commercial bank to pay a business and occupation tax starting October 1, 2025. Currently, these credit unions are exempt from this tax under state law, but the bill removes that exemption for any credit union that merges with a bank regulated by the Department of Financial Institutions. The tax would equal 1.2% of the credit union's gross income, applying only to merged entities. This change directly affects credit unions that choose to merge with commercial banks, shifting their tax obligation from exemption to a standard 1.2% rate.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves tax exemption for merged credit unions, closing a loophole and increasing state tax revenue from this sector.90% confidence

Sub-Topics Business Taxes

Track

in committee · Washington · House Jan 12, 2026

HB 1986: Concerning the application of taxes to sales of motor vehicles for use in retail car rentals.

HB 1986 would impose a new 5.9% tax on motor vehicle sales to businesses that use the vehicles for retail car rentals, directly affecting car rental companies purchasing vehicles for their fleets. This tax applies specifically to vehicles bought for rental operations (not individual car sales) and must be paid by the rental company at the time of purchase. Revenue from this tax will fund the state’s multimodal transportation account. The bill amends existing tax law to create this targeted tax, with the rate applying to sales occurring on or after October 1, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new 5.9% tax on rental companies to fund multimodal transportation account, directly increasing state revenue for public infrastructure spending.95% confidence ✓ TransportationSupports TransportationBill imposes tax on rental vehicle sales to fund multimodal transportation account, directly advancing infrastructure funding.95% confidence

Sub-Topics Business Taxes Revenue Sales Tax Driver Licensing Transportation Funding Vehicle Registration

Track

in committee · Washington · House Jan 12, 2026

HB 2084: Increasing funding for K-12, health care, and public safety by repealing or modifying tax preferences for certain industries and goods.

House Bill 2084 seeks to increase state funding for K-12 education, health care, and public safety by modifying certain tax preferences. The bill repeals an existing tax exclusion, making sales of precious metal bullion and monetized bullion subject to state taxes. Additionally, it clarifies that businesses operating self-service storage facilities are subject to the state's business and occupation (B&O) tax for renting or leasing individual storage spaces. These changes aim to generate revenue for the specified public services.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill closes tax loopholes (repealing bullion tax exclusion, clarifying B&O tax) to generate revenue for K-12, healthcare, and public safety funding.95% confidence ✓ EducationSupports EducationBill explicitly increases K-12 education funding by generating revenue through tax changes to fund schools, health care, and public safety.95% confidence ✓ HealthcareSupports HealthcareBill explicitly increases healthcare funding by generating revenue through tax changes targeting precious metal sales and storage facilities.95% confidence

Sub-Topics Business Taxes Sales Tax State Budget K-12 Education

Track

in committee · Washington · House Jan 12, 2026

HB 1558: Concerning broadcasters.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 0.484% tax on broadcasters' gross income, directly increasing state tax revenue from this sector with defined exclusions.95% confidence

Sub-Topics Business Taxes Income Tax

Track