Budget & Taxes (Business Taxes)

in committee · Washington · House Jan 12, 2026

HB 1702: Authorizing counties to impose a public utility tax.

HB 1702 would allow Washington counties to impose a 3% tax on utilities (like electricity, gas, water, and sewer services) operating in unincorporated areas. Utilities would add this tax to customer bills and show it separately, while counties must use 0.2% of the revenue for low-income utility assistance. The bill permits counties to exempt business customers (e.g., factories, data centers) but not residential customers unless businesses are also exempt. It defines "utility" broadly to include major service providers and ensures the tax doesn’t overlap with existing state-level utility taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 3% utility tax with mandatory 0.2% revenue allocation for low-income assistance, advancing fiscal responsibility and funding essential public service.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Washington · House Jan 12, 2026

HB 2083: Modernizing the excise taxes on select services and nicotine products and requiring certain large businesses to make a one-time prepayment of state sales tax collection.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax base to computer services/nicotine products, closes digital service exemptions, increases state revenue through updated tax code.90% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Washington · House Jan 12, 2026

HB 1564: Supporting employers providing child care assistance to employees by establishing a business and occupation and public utility tax credit.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 100% tax credit against business taxes for employer child care costs, reducing tax liability and incentivizing employee support, aligning with tax relief policies.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax credit for employer-provided child care, expanding employee benefits and supporting work-life balance for workers.95% confidence

Sub-Topics Business Taxes Tax Credits

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in committee · Washington · House Jan 12, 2026

HB 1981: Imposing a local option tax on the sale or transfer of renewable energy facilities.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new local tax on renewable energy facility sales to fund county general revenue, increasing local fiscal resources and directing project income to communities.95% confidence ✓ EnergySupports EnergyBill taxes renewable energy facility sales to fund local communities, supporting rural economic benefits from clean energy projects without restricting development.95% confidence

Sub-Topics Business Taxes Sales Tax Renewable Energy Solar Tags Rural Communities

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in committee · Washington · Senate Jan 12, 2026

SB 5711: Defining the rental or lease of individual storage space at self-service storage facilities as a retail transaction for the imposition of business and occupation and sales and use taxes.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax base by taxing storage rentals as retail sales, closing prior exemption under RCW 82.04.050, aligning with fiscal responsibility indicators.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Washington · House Jan 12, 2026

HB 1778: Sharing state sales tax revenues with local governments and not increasing the state or local sales tax rate.

HB 1778 requires Washington State to transfer 20% of monthly sales tax revenues collected to a dedicated local sales tax account starting January 1, 2026. This directly affects local governments (counties, cities, transportation authorities, and other local taxing jurisdictions) that collect sales taxes under state law. The bill mandates monthly transfers of these funds, with distributions made to local entities in proportion to their previous month's sales tax collections. It does not change existing sales tax rates but ensures a consistent revenue share from state collections. The bill amends existing law to implement this monthly distribution process beginning in 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesTransfers 20% of state sales tax revenue to local governments, increasing their funding without raising tax rates. This strengthens local budgeting and fiscal management by providing dedicated revenue streams.90% confidence

Sub-Topics Business Taxes Sales Tax State Budget

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in committee · Washington · Senate Jan 12, 2026

SB 5024: Providing a tax exemption for the first 20,000 gallons of wine sold by a winery in Washington.

SB 5024 exempts the first 20,000 gallons of table wine or cider sold annually by Washington wineries from most state wine taxes. It applies specifically to small wineries (defined as those with under 6,000 gallons in the prior year) and reduces their tax rate on the first 20,000 gallons to $0.0528 per liter, while exempting them from other taxes under the section. The bill aims to support small wineries facing economic challenges like recessions, wildfires, and pandemics, which have led to many closures. This tax relief is intended to help these businesses grow, retain jobs, and maintain tourism and community contributions. The exemption only applies to the first 20,000 gallons; standard taxes apply to all additional sales.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts small wineries from wine taxes on first 20k gallons, reducing tax burden to support economic resilience.95% confidence

Sub-Topics Business Taxes Tax Incentives

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in committee · Washington · House Jan 12, 2026

HB 1417: Establishing an embodied carbon tax on cigarettes.

HB 1417 imposes a new $0.0015 per cigarette tax based on the carbon emissions from cigarette production ("embodied carbon"), starting October 1, 2025. The tax increases every five years beginning October 2030 by 25% plus the annual inflation rate (measured by CPI), rounded to the nearest cent. This tax applies to cigarette manufacturers or sellers who collect it at the point of sale, with all revenue deposited into the state's general fund. The bill directly affects cigarette producers and retailers by adding this carbon-based tax to existing cigarette excise taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new carbon-based cigarette tax, directing revenue to general fund, increasing state tax revenue and budget resources.95% confidence ✓ EnvironmentSupports EnvironmentTax on cigarette production carbon emissions incentivizes emission reduction, directly advancing environmental protection through carbon pricing.90% confidence

Sub-Topics Business Taxes State Budget Climate Change

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in committee · Washington · House Jan 12, 2026

HB 2046: Creating fairness in Washington's tax by imposing a tax on select financial intangible assets.

HB 2046 imposes a tax of $8 for every $1,000 in market value on Washington residents' financial intangible assets (like stocks, bonds, and mutual funds) exceeding $50 million in value. It exempts assets such as private company ownership, pensions, retirement accounts, and the first $50 million of holdings. Revenue from this tax will fund K-12 schools, early learning programs, child care, and higher education through the Education Legacy Trust Account. The bill targets high-value financial investments held by residents while excluding common retirement and private business assets.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes targeted tax on high-value financial assets to fund K-12 schools, early learning, and higher education through dedicated trust account, aligning with funding public services and closing tax loopholes for wealthy.95% confidence ✓ EducationSupports EducationBill imposes tax on high-value financial assets to fund K-12 schools, early learning, child care, and higher education via Education Legacy Trust Account.95% confidence

Sub-Topics Business Taxes Early Childhood K-12 Education

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in committee · Washington · House Jan 12, 2026

HB 1895: Establishing a business and occupation tax credit for small business employers providing educational assistance to employees.

HB 1895 creates a tax credit for Washington small businesses (50 or fewer employees) that pay for employees' educational expenses at accredited institutions. The credit covers 100% of costs for tuition, books, and on-campus lodging related to associate degrees, apprenticeships, or technical programs, up to $20,000 per business annually. Businesses must apply through the state department, and unused credits can be carried forward for one year. The credit expires January 1, 2037 for the benefit amount and January 1, 2038 for the entire provision.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for small businesses, reducing their tax burden and incentivizing educational investment, aligning with tax relief and workforce development goals.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credit for employer-funded employee education, expanding workforce development opportunities and enhancing employment standards through skill-building.85% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Apprenticeships Tags Small Business

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