Budget & Taxes (Revenue)

HB 1083 changes how Washington's aircraft fuel tax revenue is split between airport projects and the state general fund. Starting July 2025, 0.5% of the tax revenue (increasing to 1% after 2027) goes to airport projects via the aeronautics account, while the remaining 6.5% minus that amount flows to the general fund. It requires the transportation department to track and annually report on funded airport projects, including state grants, federal matching funds, and local contributions. This directly affects airports receiving project funding and state budget allocations through these revenue changes.

This bill amends Washington State's business tax code, establishing new tax rates for various sectors: 0.275% for international investment management, 1.8% for most business activities (with a reduced 1.5% rate for small businesses and hospitals), and 0.9% for aerospace product development. It requires 16.67% of revenue from the 1.8% tax rate to be deposited into a workforce education investment account (RCW 43.79.195), which funds job training and workforce development programs. The bill does not increase funding for higher education; instead, it redirects business tax revenue to workforce education initiatives. It takes effect October 1, 2025.