SB 5989 changes how Washington State distributes revenue from aircraft fuel taxes. Starting July 2026, 0.5% of this tax (increasing to 1% after 2027) will fund the aeronautics account for aviation projects, while the remaining 6.5% minus that amount goes to the state general fund. The bill requires the Department of Transportation's aviation division to track and annually report on airport projects funded through this account, including state grants, federal matching funds, and local contributions. These reports must detail each project's description, funding sources, and outcomes for the legislature. The law takes effect July 1, 2026, and mandates ongoing transparency about how these funds support airport infrastructure.
HB 2562 increases state funding for school districts that collect local enrichment levies, adjusting the target rate from $1.50 to $2.50 per $1,000 of property value. It calculates state assistance based on a district’s actual levy rate relative to this $2.50 target, with a per-student funding threshold of $3,838 (adjusted for inflation starting in 2027). The bill directly affects public school districts and state-tribal education compact schools, ensuring state support aligns with local levy efforts. It takes effect January 1, 2027, and does not count toward the state’s constitutionally required basic education funding.
HB 2612 protects revenues from specific state surcharges by mandating their direct deposit into Washington's workforce education investment account. The bill requires all funds from the workforce investment surcharge (RCW 82.04.299) and specified revenues (RCW 82.04.290(2)(c)) to be placed solely in this account, with spending limited to higher education programs, workforce development, and student aid. Crucially, it prohibits using these funds to replace or reduce existing state, federal, or local education funding - ensuring they provide supplemental support only. This directly affects state higher education institutions and workforce programs that rely on these designated funds.
HB 2528 standardizes how cities and counties under Washington’s Growth Management Act can impose a 0.25% real estate sales tax to fund capital projects. It requires tax revenue to be used exclusively for specific infrastructure like roads, parks, airports, and affordable housing projects, with limits on how much can fund homelessness housing (capped at 25% of funds or $100,000, whichever is greater). Cities must identify these projects in their budget and may need voter approval for new taxes, while ensuring funds align with comprehensive planning requirements. The bill updates existing law to create uniform rules across jurisdictions, replacing inconsistent local approaches.
HB 2224 allows cities and towns in Washington to create fire protection districts with boundaries matching their city limits, subject to voter approval. It requires cities to include detailed financing plans in their proposals, showing how property taxes or special fees will be used and how they will impact existing city tax levies. For districts formed before July 1, 2026, cities must reduce their own property tax levies by the amount the new district imposes; for districts formed after that date, cities must stay within specific tax rate limits. The bill also mandates public hearings and specifies ballot language requirements for voter approval. This directly affects local governments creating districts and property owners through potential tax changes.
HB 2621 expands Washington's senior property tax relief program to cover more residents. It increases income thresholds for full exemption (from $50,000 to $70,000 for moderate income, and $60,000 to $80,000 for lowest income) and raises the property value cap for full exemption (to $500,000). Eligibility includes residents 61+ or disabled retirees, veterans with 40%+ disability rating, and surviving spouses 57+. The bill also streamlines how exemptions transfer when moving homes and requires clearer reporting on how property tax revenue is used. This directly affects seniors and disabled homeowners with limited income who own their primary residence.
SB 6231 removes a tax exemption that previously allowed data centers to avoid sales tax on equipment replacements. This directly affects data center operators and tenants who currently benefit from the exemption, ending new applications after July 1, 2026, and requiring existing exemption holders to meet new job creation rules. Specifically, data centers must demonstrate a net increase of 35 family-wage jobs (or 3 per 20,000 sq ft) to maintain their exemption, with the requirement applying to both owners and tenants. All existing exemptions for equipment replacement will expire by July 1, 2048, and no new exemptions can be issued after 2026. The bill aims to generate state revenue by ending this tax preference while tying existing benefits to job growth requirements.
HB 2227 would exempt sales of "qualified affordable housing" from Washington's real estate excise tax. This bill amends the state's tax code (RCW 82.45.010) to create this specific exemption for qualifying affordable housing properties. The exemption directly affects sellers of eligible affordable housing units, reducing their tax burden when selling such properties. The bill is currently pending in the House Finance Committee after being prefaced in December 2025.
This bill (SB 6320) modifies Washington State's funding formula for school district enrichment levies and creates new rules for students in alternative learning experiences. It adjusts state funding based on actual district levy rates (capping at $1.50 per $1,000 assessed value) and establishes a process for districts to restore funding for students in remote online programs when certified by a healthcare provider due to immunosuppression, chronic illness, injury, or bullying-related medical conditions. The bill defines "multidistrict online providers" as organizations serving students across multiple districts, excluding certain cooperative programs. It directly affects school districts, students in remote learning, and tribal education compact schools by changing how enrollment and funding are calculated for alternative learning programs.
SB 6012 exempts schools (both public and private) from paying Washington's retail sales tax on certain services they purchase for operational use, such as cleaning, repairs, or maintenance. The bill amends state tax law (RCW 82.04.050) to exclude these school-purchased services from the definition of "retail sale," removing the tax obligation for schools. This change directly affects schools by reducing their operational costs for essential services, without altering tax treatment for other businesses. The bill is currently pending in committee after being prefaced for introduction in January 2026.
