Budget & Taxes (Business Taxes)

in committee · Washington · House Feb 4, 2026

HB 2725: Undoing the recent changes to the estate tax.

HB 2725 reverts Washington state's estate tax rates to levels in effect before July 1, 2025, by amending RCW 83.100.040. It directly affects Washington residents with taxable estates exceeding $1 million, as it reduces tax rates for estates valued between $1 million and $9 million. The bill changes the tax brackets - for example, lowering the top rate from 35% to 20% for estates over $9 million - based on the decedent's death date. This policy change applies to estates of decedents dying on or after specific dates in 2025 and 2026, undoing recent increases enacted in 2025.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill reduces estate tax rates for high-value estates (over $1M), lowering top rate from 35% to 20% - creating tax breaks for wealthy individuals, aligning with 'oppose' indicators.95% confidence

Sub-Topics Business Taxes

Track

in committee · Washington · House Feb 4, 2026

HB 2724: Establishing a tax on millionaires.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes tax on top 0.5% to fund K-12, health care, and education programs via state general fund.95% confidence ✓ EducationSupports EducationBill directs millionaire tax revenue to fund K-12 education and higher education, explicitly increasing education funding per summary.95% confidence ✓ HealthcareSupports HealthcareBill allocates tax revenue to fund healthcare services as part of state general fund priorities95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax K-12 Education

Track

in committee · Washington · House Feb 4, 2026

HB 2723: Modifying existing tax preferences.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates 786 outdated tax exemptions (including business loopholes), closing tax loopholes secured through private interests to promote fiscal responsibility.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

Track

in committee · Washington · House Feb 12, 2026

HB 2736: Reinstating estate tax rates that applied immediately before May 20, 2025, for estates of decedents dying on or after July 1, 2026.

HB 2736 reinstates Washington's estate tax rates that were in effect immediately before May 20, 2025, for estates of decedents dying on or after July 1, 2026. It applies these specific tax rates (e.g., 20% on estates over $9 million) to Washington-resident decedents' taxable estates, directly affecting larger estates subject to state taxation. The bill amends RCW 83.100.040 to restore the pre-May 2025 rate structure, which includes stepped tax brackets starting at $0 for estates under $1 million and rising to 20% for estates over $9 million. This change would apply to estates settled after July 1, 2026, but does not affect estates of decedents dying before that date.

Topics ✓ Budget & TaxesSupports Budget & TaxesRestores higher estate tax rates (20% on estates >$9M), increasing state revenue from large estates. Directly strengthens tax collection for state budget.95% confidence

Sub-Topics Business Taxes

Track

in committee · Washington · House Feb 2, 2026

HB 2716: Restoring the public utility tax credit for low-income assistance.

HB 2716 restores a tax credit for electric and gas utilities that provide low-income energy assistance, directly affecting these utilities and the low-income households they serve through energy assistance programs. Utilities can claim a 50% tax credit on qualifying contributions (money given to low-income energy assistance programs) and billing discounts (reduced bills for eligible customers) if their spending exceeds 125% of their 2000 levels. The credit is capped at $2.5 million statewide annually, requires annual applications with specific documentation, and expires unused. The bill aims to support existing low-income energy assistance programs by incentivizing utility contributions.

Topics ✓ Budget & TaxesSupports Budget & TaxesRestores tax credit for utilities providing low-income energy assistance, providing tax relief to fund essential programs for vulnerable households.95% confidence ✓ EnergySupports EnergyRestores tax credit for utilities providing low-income energy assistance, directly protecting vulnerable consumers and promoting energy affordability through billing discounts and program funding.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Energy Efficiency Utility Regulation

Track

signed · Washington · Senate Mar 30, 2026

SB 6346: Establishing a tax on millionaires.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new tax on top earners to fund education/healthcare, shifting burden upward and directly allocating revenue to public services per support indicators.95% confidence ✓ EducationSupports EducationBill explicitly allocates tax revenue to fund K-12 education and higher education programs.95% confidence ✓ HealthcareSupports HealthcareBill explicitly allocates tax revenue to fund healthcare programs, directly increasing healthcare funding per summary.95% confidence

Sub-Topics Business Taxes Sales Tax K-12 Education

in committee · Washington · House Feb 19, 2026

HB 2738: Establishing an income tax on individuals with Washington taxable income over $1,000,000 per year and households with income over $2,000,000 per year.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 9.9% tax on high earners to fund public defense (7%) and tax relief for working families (93%), aligning with funding essential programs and tax relief for lower/middle income.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

Track

in committee · Washington · House Feb 28, 2026

HB 2746: Reducing state property taxes.

HB 2746 reduces Washington State's 2028 property tax levy by $2.1 billion, specifically by lowering the "part I highest lawful levy" amount used in tax calculations for that year. This adjustment directly affects all Washington property owners through the state's property tax system, as it modifies how tax rates are applied to assessed property values. The bill amends existing tax law (RCW 84.52.065) to implement this specific reduction for 2028, while maintaining the $3.60 per $1,000 assessed value cap for future years. It does not change current tax rates or provide immediate relief, only setting a defined reduction for the 2028 tax collection period.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill explicitly reduces 2028 property tax levy by $2.1B via amended tax law, providing direct tax relief to property owners as a core fiscal action.95% confidence

Sub-Topics Business Taxes Property Tax

Track

in committee · Washington · House Feb 20, 2026

HB 2713: Imposing a business and occupation tax surcharge on the operators of private detention facilities.

HB 2713 would impose a 1% surcharge on the taxable income from operating private detention facilities in Washington State, effective July 1, 2026. It directly affects operators of such facilities that generate over $1 million in annual Washington gross receipts. The surcharge applies to the portion of income specifically tied to running these facilities, in addition to existing business taxes. This policy change would increase tax obligations for qualifying private detention facility operators without altering the definition of the facilities themselves.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 1% tax surcharge on private detention operators with >$1M revenue, increasing state tax revenue for fiscal management under Budget & Taxes.90% confidence ✓ Criminal JusticeSupports Criminal JusticeTaxing private detention facilities aligns with criminal justice reform efforts to reduce for-profit incarceration, directly targeting a system criticized for incentivizing mass detention.92% confidence ✗ ImmigrationOpposes ImmigrationBill imposes tax on private detention facilities used for immigration enforcement, increasing costs to limit enforcement infrastructure.90% confidence

Sub-Topics Business Taxes Fees & Licensing Detention

Track

in committee · Washington · House Feb 20, 2026

HB 2730: Clarifying the metric for judging the effectiveness of aerospace tax preferences.

HB 2730 clarifies how Washington state will evaluate whether tax incentives for the aerospace industry remain effective. It requires the Joint Legislative Audit and Review Committee to annually assess aerospace employment in Washington compared to other states using a five-year average of employment data starting in 2029. If Washington’s share of aerospace jobs stays the same or grows relative to other states, the tax incentives will automatically extend until 2040. The bill directly affects aerospace companies receiving tax preferences by tying their continued eligibility to measurable workforce outcomes. It amends a 2013 provision to establish this specific employment-based metric for evaluating the incentives' success.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill extends tax incentives for aerospace industry, maintaining tax preferences through automatic renewal criteria.95% confidence

Sub-Topics Audits & Accountability Business Taxes Tax Incentives

Track