Budget & Taxes (Business Taxes)

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 · House Feb 6, 2026

HB 2655: Providing a retail sales and use tax exemption for the construction and equipping of new data centers located in a county east of the Cascades that borders another state and has a population of at least 500,000.

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.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill grants sales tax exemption for data centers, reducing state tax revenue. This weakens tax collection, aligning with 'oppose' indicators for tax reduction.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill mandates family-wage job creation (35+ or 3 per 20k sq ft) as a condition for tax exemption, directly advancing employment standards and job quality.90% confidence ✓ TechnologySupports TechnologyTax exemption directly incentivizes data center construction and infrastructure, advancing tech infrastructure development per bill's purpose.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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signed · Washington · Senate Apr 1, 2026

SB 6228: Removing a tax exemption for the warehousing and reselling of prescription drugs. (REVISED FOR ENGROSSED: Removing a tax exemption for the warehousing and reselling of prescription drugs and providing tax relief for critical access pharmacies.)

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves tax exemption for drug wholesalers, closing a loophole to increase tax revenue under business tax code (RCW 82.04.280).95% confidence

Sub-Topics Business Taxes State Budget Tax Incentives

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 2187: Supporting employers providing child care assistance to employees by establishing a business and occupation and public utility tax credit.

HB 2187 creates a tax credit for Washington employers who provide child care assistance to their employees. It allows businesses to claim a 50% credit against their business and occupation tax for costs paid to registered child care providers, with key limits: a $50,000 annual cap per business and a $5 million statewide annual cap. The credit initially targets small businesses (under 100 full-time employees) and those joining child care consortiums (grouped businesses pooling resources) through 2028, then expands to all qualifying employers starting in 2029. The program expires on January 1, 2033, and requires electronic filing without separate applications.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 50% tax credit for small businesses providing child care, reducing business tax burden and incentivizing employer support through fiscal policy.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax credit for employers providing child care benefits, directly advancing worker support and employment standards by reducing employee childcare costs.95% confidence

Sub-Topics Business Taxes Tax Credits

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in committee · Washington · Senate Mar 10, 2026

SB 5949: Concerning taxes imposed on insurers operating within the state.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses tax loophole for insurers, ensuring proper tax collection and revenue for state budget by requiring only insurers paying premium taxes to claim exemption.95% confidence

Sub-Topics Business Taxes Tax Incentives

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signed · Washington · House Mar 23, 2026

HB 2089: Supporting wildfire mitigation by modifying RCW 82.04.29005, concerning taxes on loan interest.

HB 2089 modifies Washington's tax code to redirect revenue from a business tax preference for "community banks" toward wildfire response funding. It updates the definition of "community bank" from "operating in ten or fewer states" to align with the federal standard ($10 billion or less in assets), reversing a 2012 policy that allowed 65% of tax savings ($91.6 million in 2023) to flow to non-community banks. Starting November 2027, the state will transfer annual revenue gains from this tax change directly into the wildfire response account, which funds forest restoration and community resilience. This bill directly affects financial institutions previously qualifying under the outdated definition, while ensuring funds support wildfire mitigation as mandated by the 2021 wildfire response account.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects $91.6M in tax savings from non-community banks to wildfire response funding, closing a loophole to strengthen public service funding.92% confidence ✓ EnvironmentSupports EnvironmentBill explicitly redirects tax revenue to wildfire response funding, directly supporting environmental protection through wildfire mitigation as stated in its title and summary.90% confidence

Sub-Topics Business Taxes Forestry Natural Disasters

in committee · Washington · House Jan 27, 2026

HB 2098: Adjusting higher education funding.

HB 2098 imposes a surcharge on select large tech companies with global revenue over $25 billion, increasing the rate from 1.22% (2020-2025) to 7.5% (starting 2026) on their taxable gross income. The surcharge applies to businesses engaged in "advanced computing" (including cloud services, software, and platforms), excluding hospitals, health clinics, and certain telecom or financial firms. Revenues from the surcharge fund workforce education programs, with automatic enrollment increases in computer science and engineering degrees at state universities when demand exceeds capacity by 100+ students. The bill also requires quarterly reporting and includes penalties for evasion, while exempting specific healthcare providers from the tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 7.5% surcharge on large tech firms to fund workforce education programs, directly increasing tax revenue for public services.95% confidence ✓ EducationSupports EducationBill imposes surcharge on large tech firms to fund workforce education programs with automatic enrollment increases, directly boosting education funding.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentFunds workforce education programs with automatic enrollment increases, directly supporting worker skills development and employment opportunities.90% confidence

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

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in committee · Washington · Senate Mar 2, 2026

SB 5932: Providing certainty for the development of low-to-zero carbon alternative jet fuel production in Washington state.

SB 5932 provides certainty for low-to-zero carbon alternative jet fuel (sustainable aviation fuel) production in Washington by clarifying tax incentives and carbon accounting rules. It establishes a 0.275% tax on manufacturing and sales of alternative jet fuel, effective when facilities reach 20 million gallons annual capacity (or July 1, 2031 at the latest), and expires after nine years. The bill requires the Department of Ecology to allow specific carbon intensity calculations for electricity used in production, using the utility’s reported fuel mix rather than separate tracking. This directly affects fuel producers, processors, and utilities supplying energy to these facilities, reducing investment risks by creating a clear timeline for tax benefits.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes a new 0.275% tax on alternative jet fuel production, directly addressing tax policy to incentivize industry development within state fiscal framework.95% confidence ✓ EnergySupports EnergyPromotes sustainable aviation fuel production via tax incentives and carbon accounting, advancing renewable energy development and reducing fossil fuel dependence.95% confidence ✓ EnvironmentSupports EnvironmentBill establishes tax incentives and carbon accounting for low-carbon jet fuel, directly advancing climate goals by promoting sustainable aviation fuel production and reducing emissions.95% confidence ✓ TransportationSupports TransportationBill promotes sustainable aviation fuel production through tax incentives and carbon rules, advancing sustainable transportation infrastructure and aligning with 'promotes sustainable transportation' indicator.95% confidence

Sub-Topics Business Taxes Airports

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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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