HB 1094 creates a property tax exemption for nonprofit organizations that loan, lease, or rent property to government entities (like cities, counties, or state agencies) for character-building, benevolent, protective, or rehabilitative social services - such as youth programs, homeless shelters, or community health initiatives. It directly affects qualifying nonprofits that provide these services and government agencies using their facilities. The key provision expands existing tax exemptions by allowing property used by government for these purposes to be exempt, even if owned by a nonprofit. This policy change aims to reduce costs for nonprofits and governments delivering essential community services, effective July 2025.
House Bill 2079 proposes to increase the tax rates on several types of alcoholic beverages sold in Washington state. Specifically, it doubles the additional tax on fortified wine from approximately 23 cents to 46.88 cents per liter and on other wines (excluding cider) from one cent to two cents per liter. The bill also significantly raises the additional tax on cider to $0.0563 per liter and doubles the additional tax on beer and strong beer from $2 to $4 per barrel. These tax adjustments primarily affect alcohol distributors, producers, and ultimately consumers, with most of the collected additional revenue directed to the state general fund.
HB 2083 proposes to update Washington's tax code by expanding the retail sales tax to include select services and new nicotine products, and by requiring a one-time prepayment of state sales tax collection from certain large businesses. The bill specifically extends retail sales tax to computer-related services and removes exemptions for digital automated services. It also aims to apply existing taxes on tobacco products to new and emerging nicotine products that are currently exempt. The legislation states its intent to generate revenue for public schools, health care, and social services.
HB 1564 creates a 100% tax credit for Washington employers that provide child care assistance to employees, directly affecting eligible businesses. The credit covers 100% of costs for two types of assistance: (1) employer-paid portions of employee wages used for child care expenses (like tuition), and (2) costs for in-house child care facilities. Employers can claim the credit against business and occupation taxes (Chapter 82.04 RCW) or public utility taxes (Chapter 82.16 RCW), but not both for the same costs. The credit is available from January 1, 2026, through December 31, 2037, with a final expiration date of January 1, 2038.
HB 1517 imposes a $2 tax on the retail sale of smart wireless devices (like smartphones, tablets, and laptops) priced over $250. The revenue collected will fund Washington's digital equity programs, specifically targeting underserved communities. This includes improving internet access, providing devices, and offering digital skills training for rural residents, seniors, veterans, low-income households, and others facing connectivity barriers. The tax applies to sellers who collect it from buyers at the point of sale, with funds deposited into a dedicated state digital equity account. The bill aims to address systemic gaps in digital access identified through legislative findings.
SB 5251 would change how Washington municipalities use lodging tax revenues. It requires applicants (like tourism groups or cities) to show how funding will increase tourism visits, such as overnight stays or trips over 50 miles from home. Municipalities with over 5,000 residents must use a local advisory committee to review applications, and recipients must report actual visitor numbers annually. The bill also mandates public reporting and biennial updates to the legislature on how these funds boost tourism.
HB 1981 allows Washington counties to impose a 3% local tax on the sale or transfer of renewable energy facilities (like wind and solar farms) if approved by voters in a county election. The tax would apply to the seller of the facility, with proceeds becoming general county revenue. It aims to direct income from these projects back to rural communities where they operate, addressing concerns about limited local economic benefits. Counties must hold a vote to implement this tax, which would take effect January 1, 2026.
SB 5604 creates a 20-year property tax exemption for new housing projects located within a designated "station area" (within 0.5 miles of a major transit stop) in Washington. To qualify, projects must include at least 20% of units affordable to low- or moderate-income households (defined as 50-80% of local median income) for 50 years, with long-term covenants ensuring affordability. Local governments must adopt regulations for station areas and oversee compliance, including recording deeds to maintain affordability. The bill aims to incentivize housing near transit by reducing development costs while mandating long-term affordability for residents.
SB 5711 reclassifies the rental of individual storage units at self-service facilities as a "retail transaction" for tax purposes under Washington State law. This means self-storage businesses must now collect and remit sales tax on storage rentals, treating them like other retail sales instead of exempt services. The bill amends existing tax code (RCW 82.04.050) to explicitly include storage rentals under the definition of taxable "retail sales," aligning them with other similar services. It directly affects self-storage operators across Washington who will now be required to collect sales tax on monthly or short-term storage unit leases.
HB 1324 redirects revenues from Washington's Climate Commitment Act (CCA) auction system to fund major state transportation projects, including the I-5 Columbia River bridge replacement and the US 395 North Spokane corridor. The bill amends existing law to require that CCA auction proceeds - previously restricted from road projects - be allocated specifically to highway and bridge infrastructure, rather than solely to climate or environmental programs. Key provisions mandate that funds support projects improving freight movement (like the Gateway freight project) and reducing congestion, which the bill states contributes to lower greenhouse gas emissions. This reallocation changes how CCA revenue is spent but does not alter the underlying auction system or funding amounts.
