Budget & Taxes (Sales Tax)

in committee · Washington · House Jan 12, 2026

HB 2290: Exempting schools and school districts from retail sales and use tax.

HB 2290 exempts schools and school districts in Washington State from paying retail sales and use taxes on purchases and property use. It directly affects public and private K-12 schools, educational institutions, and programs providing instruction to students through grade 12, regardless of their specific designation. The bill removes sales tax (RCW 82.08.020) from all purchases made by these entities and eliminates use tax obligations (RCW 82.12) for their personal property. This policy change simplifies tax compliance for schools and reduces their operational costs by excluding their purchases from state tax calculations.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts schools from sales/use taxes, providing direct tax relief and preserving district funds for educational purposes.95% confidence ✓ EducationSupports EducationExempting schools from sales/use taxes directly increases available funds for educational programs and operations by removing a financial burden.95% confidence

Sub-Topics Business Taxes Sales Tax K-12 Education

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in committee · Washington · Senate Feb 26, 2026

SB 6211: Creating uniformity for the process by which cities planning under the growth management act implement real estate excise taxes.

SB 6211 standardizes how Washington cities and counties under the Growth Management Act can impose a 0.25% real estate sales tax to fund capital projects. It directly affects local governments by requiring them to use tax revenue exclusively for specific capital projects like streets, parks, airports, and affordable housing/homeless facilities, as defined in the bill. Key mechanisms include mandating voter approval for new taxes in certain areas, restricting fund use to projects in comprehensive plans, and allowing up to 25% of funds for affordable housing initiatives through established collaborations. The bill also preserves existing commitments for pre-1992 debt or projects while requiring documentation of future capital project funding.

Topics ✓ Budget & TaxesSupports Budget & TaxesStandardizes 0.25% real estate tax for capital projects (streets, parks, affordable housing), directing funds to public infrastructure per bill's explicit mandate.90% confidence ✓ HousingSupports HousingBill mandates tax revenue use for affordable housing/homeless facilities per specific capital project requirements, directly funding housing initiatives.95% confidence

Sub-Topics Business Taxes Revenue Sales Tax Affordable Housing Homelessness Property Taxes

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in committee · Washington · House Jan 12, 2026

HB 2359: Modifying requirements and allowed uses for certain funding related to providing and maintaining affordable housing and related services.

HB 2359 modifies Washington state law to change how a 0.1% sales tax revenue can be used for affordable housing and related services. It requires at least 60% of the funds to be spent on building or maintaining housing for low-income residents (at or below 60% of county median income), including veterans, the homeless, and people with disabilities, or on behavioral health facilities. The bill also mandates that 15% of new housing units must be reserved for people living near the facility, and allows local governments to use bonds and interlocal agreements to finance these projects. This law affects counties and cities that impose the tax, directing funds toward specific housing and services while ensuring community-focused allocation.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects 0.1% sales tax revenue to fund affordable housing for low-income groups, mandating 60% allocation for housing/services and 15% reserved locally, strengthening fiscal support for housing programs.95% confidence ✓ HealthcareSupports HealthcareBill requires 60% of funds for behavioral health facilities, explicitly supporting mental health services as part of healthcare policy.90% confidence ✓ HousingSupports HousingRequires 60% of funds for low-income housing (≤60% AMI) including homeless/veterans/disabled, mandates 15% units for nearby residents, directly advancing affordable housing access.95% confidence ✓ VeteransSupports VeteransBill requires 60% of funds for housing including veterans as eligible beneficiaries among low-income groups, explicitly targeting veteran housing needs.90% confidence

Sub-Topics Revenue Sales Tax Mental Health Affordable Housing Homelessness Housing Finance

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in committee · Washington · House Jan 12, 2026

HB 2126: Providing an exemption for taxes on fuel used in school buses.

HB 2126 would exempt school districts in Washington state from paying taxes on fuel used in school buses. The bill amends state tax codes to specifically add school buses (operated per education laws) to the list of exempt fuel uses, directly affecting public school districts. This change would reduce operating costs for schools by eliminating a tax on fuel for all school bus operations within the state.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts school districts from fuel tax, reducing public school operating costs - direct tax relief for essential public services per tax policy indicators.95% confidence ✓ EducationSupports EducationExempts school districts from fuel tax, reducing operational costs and increasing available funds for education infrastructure and programs.95% confidence ✓ TransportationSupports TransportationExempts school bus fuel tax, reducing operational costs for public school transportation services, directly supporting transportation infrastructure funding.95% confidence

Sub-Topics Sales Tax School Transportation Public Transit Transportation Funding

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in committee · Washington · House Jan 12, 2026

HB 2121: Exempting nonprofits and schools from certain sales and use taxes on services.

HB 2121 exempts nonprofits and schools from paying state sales and use taxes on specific services they purchase, such as repairs, cleaning, installation, and maintenance. The bill amends Washington's tax code (RCW 82.04.050) to clarify that these entities are not subject to tax on qualifying services used for their operations. This directly affects organizations like schools, charities, and community groups that previously paid tax on services like building repairs or landscaping. The policy change creates a clear exemption by updating tax definitions to exclude these services for eligible nonprofits and schools.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts nonprofits/schools from sales tax on services, providing tax relief for essential organizations.95% confidence ✓ EducationSupports EducationExempts schools from sales taxes on operational services (repairs, maintenance), reducing costs and freeing funds for educational use.90% confidence

Sub-Topics Sales Tax

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in committee · Washington · House Feb 3, 2026

HB 2135: Modifying and extending the adaptive housing retail sales and use tax preference for disabled veterans.

HB 2135 extends and modifies a tax exemption for disabled veterans who use federal grants to adapt their homes. It raises the maximum tax refund per project from $2,500 to $5,000 and increases the annual state funding cap from $125,000 to $250,000, with future adjustments tied to Seattle-area inflation starting in 2028. The bill applies exclusively to veterans who received U.S. Department of Veterans Affairs grants for specially adapted housing or special housing adaptations. It expires on January 1, 2039, and requires the state to track usage to ensure funds stay within annual limits.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax refund cap for disabled veterans, expanding tax relief and raising state funding for the program, aligning with tax relief and funding indicators.95% confidence ✓ VeteransSupports VeteransBill doubles tax refund cap for disabled veterans' home adaptations and increases annual funding, directly expanding financial benefits tied to VA grants.95% confidence

Sub-Topics Sales Tax Tax Incentives Veteran Housing

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in committee · Washington · House Jan 12, 2026

HB 2097: Authorizing counties to impose a business and occupation tax.

HB 2097 would allow Washington counties to impose a business and occupation tax to fund local services like public safety and waste management, directly affecting businesses operating within county jurisdictions. Counties must adopt a standardized model ordinance developed with business stakeholder input, including a minimum $20,000 annual gross income threshold for small businesses and provisions to prevent double taxation with city taxes. Before implementing or raising the tax, counties must hold a voter referendum requiring signatures from at least 15% of registered voters. The law specifies that existing tax classifications under state law remain exempt and mandates uniform reporting and penalty rules for all counties using this tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill authorizes counties to impose business tax to fund essential local services (public safety, waste management), directly advancing fiscal management and budget allocation for public services.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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in committee · Washington · House Jan 12, 2026

HB 2167: Keeping the legislature's promises by reducing the sales tax in the event of an income tax or a tax on individual earnings.

HB 2167 would automatically reduce Washington’s state sales tax rate if the legislature ever passes an income tax or tax on individual earnings. Specifically, the bill requires the Department of Revenue to lower the sales tax rate by an amount matching the projected revenue increase from such a new tax. This measure directly affects all Washington residents and businesses that pay sales tax, aiming to offset potential new tax burdens. The bill is conditional - it only triggers if a future income tax is enacted - and does not change current tax rates.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill mandates sales tax reduction to offset potential income tax increase, providing tax relief and preventing net tax burden on residents/businesses.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

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in committee · Washington · House Jan 22, 2026

HB 2100: Enacting an excise tax on large operating companies on the amount of payroll expenses above the minimum wage threshold of the additional medicare tax to fund services to benefit Washingtonians and establishing the Well Washington fund account.

HB 2100 imposes a tax on large Washington companies for payroll expenses exceeding $125,000 per employee (mirroring the federal Medicare surtax threshold), effective July 2026. The tax revenue will fund the "Well Washington Fund," with 51% of annual revenues dedicated to supporting health care (including Medicaid), higher education, food assistance (SNAP), and energy/housing programs. The bill creates an oversight board of 25 legislative members to manage fund allocations, ensuring resources target services most impacted by federal budget cuts. This policy directly affects large operating companies with significant payroll, aiming to offset projected losses in state services from federal legislation.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes excise tax on large companies to fund health care, education, and social programs, directly advancing public service funding per topic indicators.95% confidence ✓ EnergySupports EnergyBill explicitly allocates 51% of tax revenue to 'energy/housing programs' under the Well Washington Fund, directly funding energy initiatives.90% confidence ✓ HealthcareSupports HealthcareBill dedicates 51% of Well Washington Fund revenues to healthcare (including Medicaid), directly funding health services and programs.90% confidence ✓ HousingSupports HousingBill allocates 51% of Well Washington Fund revenues to 'energy/housing programs', explicitly funding housing initiatives as part of its revenue allocation.95% confidence

Sub-Topics Revenue Sales Tax Medicaid Medicare

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in committee · Washington · House Feb 4, 2026

HB 2194: Concerning sales and use tax for cultural access programs.

HB 2194 would allow Washington counties and cities to impose a 0.1% sales tax (one-tenth of one percent) with voter approval to fund local cultural access programs, such as museums, arts initiatives, and community cultural events. Counties could implement this tax first (for up to seven years), and cities within counties could do so if counties haven’t acted by December 2024. All funds collected must be used exclusively for cultural programs under state law, and the state would collect the tax at no cost to local governments. The bill does not change existing tax rates or create new programs but provides a funding mechanism for existing cultural access efforts.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new 0.1% sales tax to fund cultural programs, directly advancing state budget allocation for public services under fiscal management.95% confidence

Sub-Topics Business Taxes Sales Tax

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