HB 1734 creates a state grant program to fund capital improvements for facilities used in outdoor learning. It provides competitive grants to tribes, local governments, nonprofits, and others to build, renovate, or rehab facilities that expand access to outdoor education for public school students, particularly in underserved communities. Key provisions require projects to increase student capacity or remove participation barriers, mandate facility maintenance for a set period, and ensure funds are used solely for outdoor learning. The grants are intended to complement existing outdoor education programs by improving infrastructure, not operating costs, with funding requests to be submitted starting in 2027.
HB 1320 increases business and occupation tax rates for multiple sectors to fund state programs. It raises rates for extractors and manufacturers to 0.5324%, semiconductor manufacturers to 0.3025% (with employment requirements), and real estate brokers to 1.65%. The bill also creates a temporary 0.31944% rate for aviation repair stations until 2040. Businesses claiming semiconductor tax preferences must maintain 90% of their three-year average employment or reimburse 50% of the tax benefit. All rate changes are intended to generate revenue for state programs benefiting Washington residents, as specified in the bill's title.
This bill allows qualifying Washington counties to impose a 0.1% sales tax to fund behavioral health diversion programs. The tax must be used exclusively for initiatives that prevent individuals with behavioral health needs from entering or remaining in the criminal justice system - such as diverting people facing up to class C felony charges, reducing repeated competency evaluations, and creating county-wide strategies for housing and support. Counties must first have a state-approved behavioral health diversion plan before implementing the tax. The law is contingent on another bill (HB 1218) being enacted by August 1, 2025.
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.
HB 2049 aims to enhance funding for K-12 education and communities by modifying state and local property tax authority and adjusting the school funding formula. The bill revises the maximum dollar amount school districts can levy for enrichment, setting it as the lesser of $2.50 per $1,000 of assessed value or a per-pupil limit. This per-pupil limit is updated with specific "inflation enhancements" through 2030 and establishes a new base amount starting in 2031, impacting funding based on student enrollment. Additionally, it adjusts how the state provides local effort assistance funding to supplement these school district enrichment levies.
HB 2024 creates a state property tax exemption for Washington homeowners' primary residences, reducing their state tax burden. It exempts either $100,000 of a home's assessed value or 60% of the county's median home value (whichever is greater), applied after other existing exemptions. This directly benefits primary residence owners - especially fixed-income households and those at risk of displacement - by lowering annual state property tax costs. The exemption applies only to state levies (not local taxes) and requires an annual application by April 1st, with verification to ensure it applies to only one residence.
HB 1284 eliminates a tax deduction that allowed corporations and other business entities to exclude investment income from Washington's business and occupation tax. This affects companies earning income from investments (like stocks or loans), particularly those investing outside Washington, which previously avoided tax on that income. The bill amends tax code to remove this deduction, with a small exception allowing deductions for investment income under 5% of annual gross receipts. The legislature states this change aims to close a perceived tax loophole, increase revenue for public schools, and create fairness by requiring all businesses to pay tax on investment income earned within the state.
Senate Bill 5794 aims to improve how tax preferences are managed in Washington state. It implements recommendations from the state's tax preference performance review process, which evaluates the effectiveness of existing tax exemptions. The bill eliminates several tax preferences identified as obsolete or unused and clarifies the legislative intent behind others. This includes updating specific tax code sections and modifying effective or expiration dates for certain industries, such as manufacturing of seafood and dairy products.
This bill would allow Washington counties to impose a local tax on utility companies (like water, electricity, and gas providers) based on their gross income from services within the county. Counties could set a tax rate up to 3%, which utilities would add to customer bills and clearly label. The tax would apply to businesses (e.g., factories, data centers) but not residential customers unless businesses also get exemptions. Counties must follow specific rules for when to start the tax and cannot create general residential exemptions. This is a proposed revenue tool for local governments, not yet law.
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.
