HB 2655 provides a sales and use tax exemption for new data centers in specific eastern Washington counties (east of the Cascades, bordering another state, with at least 500,000 residents). It covers construction, equipment, and power infrastructure costs for qualifying data centers, but requires them to create a minimum of 35 family-wage jobs or 3 jobs per 20,000 square feet of server space within six years. The exemption expires in 2048, and tax certificates must be renewed every two years, with job requirements verified annually. This policy directly affects data center developers in targeted counties seeking tax savings tied to job creation.
SB 6228 removes a tax exemption for businesses that warehouse and resell prescription drugs, making this activity subject to a 0.5% tax on gross income under Washington's business tax code (RCW 82.04.280). It directly affects drug wholesalers and retailers registered with the federal DEA and licensed by Washington's Pharmacy Quality Assurance Commission. The bill repeals the existing exemption (RCW 82.04.272) and adds "warehousing and reselling drugs for human use pursuant to a prescription" to the list of taxable activities. The tax change takes effect January 1, 2027, aiming to increase state general fund revenue.
SB 5949 clarifies a tax exemption for insurers to close a loophole allowing non-insurance businesses (like pharmacy benefit managers) to avoid state business taxes. It amends RCW 82.04.320 to require that only insurers who pay premium taxes to the state can claim the exemption, reversing a 2024 court decision that broadly interpreted the exemption. The bill applies retroactively to tax periods starting October 2, 2019, ensuring businesses that previously avoided taxes under the broad interpretation now comply. It repeals an outdated exemption section (RCW 82.04.322) to streamline tax administration. This change directly affects insurers and businesses previously using the loophole to avoid paying business and occupation taxes.
HB 2115 restores a 1985 tax exemption that removes sales tax from transactions involving precious metal bullion (like gold, silver, platinum, and palladium) and monetized bullion (coins or money made from precious metals). It directly affects businesses selling these items by exempting the bullion itself from state sales tax, though tax applies only to commissions earned on transactions. The bill defines "precious metal bullion" as refined metals (not items like jewelry) and excludes such sales from tax calculations under Washington’s tax code. It applies retroactively from January 1, 2026, to correct a 2025 repeal of the original exemption.
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.
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.
HB 2186 creates a state program to help Washington communities access federal economic development funds by providing matching state dollars. It requires the Department of Commerce to develop scoring criteria prioritizing applications based on job creation, federal funding amount, and rural/districted area impact, while setting limits on matching funds (up to 100% for nonprofits and rural projects, 50% for utilities). The bill mandates reporting on jobs created and federal funds secured, and directs the department to expand a public website with federal grant opportunities by 2028. It directly affects local governments, nonprofits, economic development organizations, and tribes seeking federal grants for projects like housing, infrastructure, and workforce training.
HB 2133 makes permanent a property tax exemption for multipurpose senior citizen centers that was originally established temporarily in 2017. The bill modifies state law to ensure these centers no longer lose their tax exemption after the temporary period ends, directly affecting qualifying senior centers that provide community services. This change removes the temporary nature of the exemption created under Chapter 301, Laws of 2017, ensuring ongoing tax relief for these facilities.
SB 5884 expands a sales and use tax deferral program to incentivize redevelopment of underutilized property in qualifying cities (with populations of 135,000-275,000). It directly affects property owners who develop affordable housing - both rental and homeownership - for low- or moderate-income households, as defined by federal income thresholds. The key mechanism allows qualifying developers to defer paying sales and use taxes on eligible projects, provided they maintain affordable housing for at least 10 years. This applies to vacant land, partially used land, or underutilized property (like surface parking lots) identified by city authorities as suitable for affordable housing redevelopment.
This bill restores a 1985 tax exemption that previously excluded sales of precious metal bullion (like refined gold, silver, and platinum) and monetized bullion (coins used as currency) from state sales tax. It directly affects businesses that sell these items, such as bullion dealers and financial institutions, by removing the tax burden on the full sale price and limiting tax to only dealer commissions. The key provision defines "precious metal bullion" and "monetized bullion" to exclude these transactions from the state’s sales tax code, with tax applying only to commissions earned on customer transactions. The exemption applies retroactively from January 1, 2026, and is intended to revive the original 1985 policy.
