Reducing the state sales and use tax rate.

HB 1374 reduces Washington State's general sales and use tax rate from 6.5% to 6% for most retail transactions, effective October 1, 2025. It directly affects consumers and businesses selling tangible goods, digital products, and most services that were previously taxed at 6.5%. The bill amends RCW 82.08.020 to lower the standard rate, while maintaining separate taxes for car rentals (5.9%) and motor vehicles (0.3%). The change applies to all retail sales covered under the current tax code, excluding specific exemptions like farm vehicles and off-road equipment.