SB 6351 would exempt specific educational and childcare services from Washington state sales tax. It targets schools, before-and-after school care programs, and arts/cultural classes for children and students. The bill amends tax law to remove sales tax on purchases for these services, directly increasing funding available to qualifying programs. This policy change provides immediate fiscal relief to schools and childcare providers by reducing their operational costs.
HB 2724 proposes a new tax on Washington residents with annual adjusted gross income of $1 million or more, affecting approximately the top 0.5% of households. The tax revenue would be deposited into the state general fund to support K-12 education, health care, higher education, human services, and the working families' tax credit. Key provisions include exempting sales of family-owned small businesses and real property from the tax, aligning the state definition of taxable income with federal rules (modified for state purposes), and reducing other taxes like sales tax on essential items. The bill aims to make the state tax system less regressive by shifting more burden to high earners while maintaining current tax rates for lower-income residents.
HB 2723 modifies Washington State's tax code by eliminating outdated tax exemptions, specifically targeting 786 existing exemptions that the legislature states have not been updated for a long time and were secured through private interests. The bill directly affects businesses currently benefiting from tax exemptions on machinery and equipment used in manufacturing, testing, or research operations, including gas distribution businesses that will lose their exemption for natural gas production equipment after July 1, 2027. Key provisions include amending tax codes to restrict exemptions for machinery/equipment to specific qualifying uses, requiring documentation for claims, and ending remittance programs for gas businesses starting in 2027. The goal is to increase revenue for the state general fund to support essential services by modernizing the tax code.
HB 2726 would allow Washington state parks districts to propose a new 0.2% sales tax to voters for park and recreation improvements. If approved by voters, the tax would fund parks, trails, athletic fields, and facility maintenance, with revenues limited to 10 years (extendable with new voter approval or up to 20 years if dedicated to debt repayment). The tax would apply to taxable purchases under state law and must be collected in addition to existing taxes. Voters in affected communities would decide whether to implement this local tax increase.
SB 6346 would impose a new tax on Washington households with annual income of $1 million or more, affecting approximately the top 0.5% of earners. Revenue generated would fund K-12 education, health care, higher education, and human services programs. The tax excludes income from selling family-owned businesses and real estate, while also including reductions to sales taxes on essentials like personal care products and business taxes through credits. This policy aims to shift tax burden toward high earners to support public services, as the bill states Washington’s current system is the second most regressive in the nation.
HB 2738 would impose a 9.9% income tax on Washington residents with taxable income exceeding $1 million annually, applying to individuals (not households) with income over this threshold. The tax requires prior passage of a constitutional amendment and would generate revenue to fund public defense programs (7%) and state tax relief initiatives (93%), including sales tax relief and working families' credits. It defines "Washington taxable income" through modifications to federal adjusted gross income, with credits available for taxes paid to other states or business taxes. The bill, referred to the Finance Committee after its first reading on February 19, 2026, remains pending.
HB 2742 creates an annual sales and use tax holiday in Washington for qualifying items priced at $500 or less per item. It exempts these items from both sales tax (under RCW 82.08) and use tax (under RCW 82.12) during a four-day period each year, specifically from 12:00 a.m. on the Friday after Thanksgiving through 11:59 p.m. on the Monday after Thanksgiving. The tax holiday directly affects all Washington residents purchasing qualifying items during this window, providing temporary financial relief on everyday goods like clothing, school supplies, or electronics. The Department of Revenue must establish administrative rules and provide taxpayer guidance to implement the holiday, consistent with existing tax agreements.
HB 2734 imposes an excise tax on sugar-sweetened beverages (like soda and energy drinks) to fund nutrition assistance programs. The tax revenue would directly support the Supplemental Nutrition Assistance Program (SNAP), food assistance programs, and fruit/vegetable incentive initiatives for low-income residents. The bill specifically prevents state-level waivers that could reduce SNAP funding, ensuring dedicated revenue for food security. It aims to reduce consumption of sugary drinks while addressing disproportionate food insecurity affecting communities of color and low-income households in Washington.
SB 6006 would exempt food banks from paying Washington's retail sales tax on qualifying services they purchase to operate their programs. The bill amends state tax law (RCW 82.04.050) to create a specific exemption for food banks, removing the tax burden on services like food distribution, storage, or administrative support. This directly reduces operational costs for food banks statewide, allowing them to redirect resources toward serving communities. The change applies only to services directly used in food bank operations, not general retail purchases.
SB 6150 provides tax relief for businesses and property owners in a specific area affected by the Fairfax bridge closure. It exempts businesses from certain state taxes (under RCW 82.04) on income received during the closure and waives property taxes (under RCW 84.36) for properties located within three miles of State Route 165 south of the SR 162 junction. The relief applies from January 1, 2026 (property taxes) or July 1, 2026 (business taxes) through the end of the calendar year when a new bridge opens over the Carbon River. Both exemptions expire the year after the new bridge opens, with property tax relief also applying retroactively to 2026 taxes.
