HB 2257 Washington House · 2025-2026 Regular Session

Concerning taxes administered by the department of revenue.

HB 2257 is a technical correction bill that updates Washington State's tax code to improve clarity and administrative efficiency for the Department of Revenue. It amends multiple tax statutes (including definitions for "tobacco product," "vapor product," and "retail sale") to resolve ambiguities and streamline tax administration without changing tax rates or creating new revenue impacts. The bill directly affects businesses and individuals interacting with Washington's tax system, particularly those handling retail sales, tobacco products, or cannabis-related transactions. It focuses on fixing outdated language and ensuring consistent application of existing tax laws.

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 5, 2026 Last action Feb 4, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Bill → Substitute Bill · 6 edits

MODERATE

This bill was revised to correct the list of amended tax codes and add new exemptions for K-12 schools. The most significant changes include updating the definition of 'sale at retail' to clarify exclusions for certain digital services and educational activities, and creating new tax exemptions for specific services (like IT and staffing) used by public schools.

Scope change

The bill's scope was expanded to include new tax exemptions for K-12 schools, school districts, and educational service districts regarding specific digital and staffing services.

DEFINITION

Updated the definition of 'sale at retail' in RCW 82.04.050 to add a new exclusion for services provided by public agencies to other public agencies and clarified exclusions for educational presentations and youth camps.

Added new definitions for 'Board', 'Internet', 'Sample', 'Sampling', and 'Tobacco product' in RCW 70.155.010 to clarify regulatory scope.

ELIGIBILITY

Added new exemptions in RCW 82.08.020 and RCW 82.12.020 for K-12 schools and districts purchasing IT services, custom website development, security services, temporary staffing, and custom software.

Modified the definition of 'temporary staffing services' to exclude services rendered by independent contractors unless they meet specific staffing service definitions.

TIMELINE

Adjusted the effective dates for various sections of the bill to align with the new numbering scheme, setting retroactive application to October 1, 2025, for most provisions.

TECHNICAL

Corrected the list of RCW sections to be amended in the act summary and fixed section numbering throughout the document.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 4, 2026

Committee

Referred to Rules 2 Review.

lower

Feb 4, 2026

Lower · Passed

Executive action taken in the House Committee on Finance at 4:00 PM.

lower

Jan 27, 2026

Lower · Passed

Public hearing in the House Committee on Finance at 8:00 AM.

lower

1 primary · 19 co-sponsors