Budget & Taxes (Sales Tax)

in committee · Washington · Senate Feb 9, 2026

SB 5650: Authorizing a local excise tax on cannabis.

SB 5650 allows Washington counties and cities to impose a local excise tax of up to 2% on the retail sale of cannabis products, including concentrates and infused items, but only with voter approval through a ballot measure and for a maximum of seven years. Counties must act before July 1, 2027, or cities within the county may then impose the tax instead. The tax, which is in addition to existing state taxes, will be collected by the state’s Liquor and Cannabis Board and distributed monthly, with 15% of the revenue going to the county and the remainder distributed based on where licensed retailers generate revenue. The bill prohibits counties and cities within the same county from imposing the tax simultaneously.

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes new local cannabis excise tax to generate revenue for counties/cities, directly increasing local budget funds through additional taxation.95% confidence

Sub-Topics Sales Tax

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in committee · Washington · Senate Jan 12, 2026

SB 5638: Funding health care access by imposing an excise tax on the annual compensation paid to certain highly compensated hospital employees.

SB 5638 imposes a 7.5% tax on the portion of annual compensation exceeding 10 times the state's average wage for the top five non-clinical employees and the hospital's lead administrator at Washington hospitals. The tax, effective January 1, 2026, applies to compensation reported to the Department of Health under state law. Revenue from this tax will fund programs to expand affordable health care access, including reproductive services and health equity initiatives. The bill targets hospitals with high executive pay levels, using the tax as a funding mechanism rather than penalizing specific hospital practices.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 7.5% tax on high hospital exec compensation to fund health care access programs, directly advancing public service funding through targeted taxation.95% confidence ✓ HealthcareSupports HealthcareBill imposes tax on hospital executives to fund expanded health care access programs including reproductive services and health equity initiatives.95% confidence

Sub-Topics Sales Tax Hospitals

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in committee · Washington · Senate Jan 12, 2026

SB 5673: Providing a sales and use tax exemption for manufacturing facilities and green manufacturing facilities.

SB 5673 creates a sales and use tax exemption for manufacturing facilities and "green manufacturing facilities" (defined as facilities certified by a state or nationally recognized sustainability organization). It exempts purchases of construction materials, equipment, labor, and services used to build or maintain these facilities. To qualify, facilities must apply for an exemption certificate (no new certificates issued after July 2035), submit annual tax performance reports, and comply with specific reporting requirements. The exemption expires January 1, 2036, with the full law ending January 1, 2037.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates sales tax exemption for manufacturing facilities, providing direct tax relief under fiscal policy to incentivize green manufacturing and economic development.95% confidence ✓ EnergySupports EnergyExempts sales tax for green manufacturing facilities, directly promoting renewable energy infrastructure investment and sustainability certifications per bill definition.95% confidence ✓ EnvironmentSupports EnvironmentTax exemption for certified green manufacturing facilities promotes sustainable practices and reduces environmental impact through financial incentives for eco-friendly operations.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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in committee · Washington · House Jan 12, 2026

HB 1532: Authorizing funding tools to mitigate the impact of sales tax sourcing in certain cities that host industrial and warehousing industries.

HB 1532 allows specific cities (with populations over 120,000, located in high-population counties, and where industrial/warehousing makes up over 25% of property valuation) to add a 0.3% sales tax to offset fiscal challenges caused by current sales tax laws. This supplemental tax, collected on taxable transactions within the city, must fund community improvements like infrastructure or services to boost local vitality. Cities using this authority must hold public meetings, maintain a budget transparency webpage, and survey residents before each biennial budget. The bill replaces an expiring state funding program set to end in July 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes 0.3% sales tax for cities to fund infrastructure/services, offsetting fiscal challenges from current tax laws per bill summary.90% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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passed · Washington · Senate Jan 12, 2026

SB 5775: Expanding local taxing authority to fund public safety and community protection focused programs and services.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands local sales tax authority (up to 0.3%) to fund public safety programs, directly advancing government spending for essential services.95% confidence ✓ Criminal JusticeSupports Criminal JusticeBill explicitly directs local tax revenue to fund public safety and community protection programs, directly advancing criminal justice initiatives through funding.90% confidence

Sub-Topics Business Taxes Sales Tax Tags Local Government Public Safety

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in committee · Washington · Senate Jan 12, 2026

SB 5795: Reducing the state sales and use tax rate.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces sales tax rate from 6.5% to 6%, providing direct tax relief to low/middle-income households as explicitly stated in the bill summary.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Washington · House Jan 12, 2026

HB 1148: Exempting goods and services provided by youth athletic facilities from sales and use tax.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts nonprofit youth sports facilities from sales tax, providing tax relief to families and supporting accessibility in underserved communities.95% confidence

Sub-Topics Sales Tax

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in committee · Washington · House Jan 12, 2026

HB 2066: Providing financial relief for families by establishing a sales tax holiday for back-to-school shopping.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides temporary sales tax exemption for qualifying back-to-school items, reducing tax burden on middle-income families per bill's explicit financial relief purpose.95% confidence ✓ EducationSupports EducationProvides tax relief on school supplies, clothing, and computers for K-12 families, reducing costs for essential educational materials and improving access.85% confidence

Sub-Topics Sales Tax K-12 Education

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in committee · Washington · Senate Jan 12, 2026

SB 5811: Establishing a tax on certain business activities related to surpluses generated under the zero-emission vehicle program.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 2% tax on ZEV credit sales, generating state revenue for budget management.95% confidence ✗ EnergyOpposes EnergyBill taxes ZEV credit trading (2% on sale price), adding cost to the mechanism supporting the ZEV program, which weakens the incentive for manufacturers to produce surplus credits and thus undermines the clean energy standard.80% confidence ✗ EnvironmentOpposes EnvironmentTaxing ZEV credit sales reduces market liquidity, potentially weakening the ZEV program's effectiveness in promoting EV adoption and environmental goals.85% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Washington · House Jan 12, 2026

HB 1896: Increasing local law enforcement officers by authorizing a local sales and use tax credited against the state portion to hire additional officers and increasing the number of basic law enforcement courses offered by the criminal justice training commission.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill authorizes 0.1% local sales tax to fund law enforcement hiring, increasing public service funding via tax revenue for essential services.95% confidence ✓ Criminal JusticeSupports Criminal JusticeBill funds hiring officers to reach national per capita average and expands criminal justice training, directly advancing law enforcement staffing and training resources.95% confidence

Sub-Topics Sales Tax Domestic Violence Law Enforcement

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