Budget & Taxes

in committee · Washington · House Jan 12, 2026

HB 2290: Exempting schools and school districts from retail sales and use tax.

HB 2290 exempts schools and school districts in Washington State from paying retail sales and use taxes on purchases and property use. It directly affects public and private K-12 schools, educational institutions, and programs providing instruction to students through grade 12, regardless of their specific designation. The bill removes sales tax (RCW 82.08.020) from all purchases made by these entities and eliminates use tax obligations (RCW 82.12) for their personal property. This policy change simplifies tax compliance for schools and reduces their operational costs by excluding their purchases from state tax calculations.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts schools from sales/use taxes, providing direct tax relief and preserving district funds for educational purposes.95% confidence ✓ EducationSupports EducationExempting schools from sales/use taxes directly increases available funds for educational programs and operations by removing a financial burden.95% confidence

Sub-Topics Business Taxes Sales Tax K-12 Education

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signed · Washington · Senate Apr 1, 2026

SB 6228: Removing a tax exemption for the warehousing and reselling of prescription drugs. (REVISED FOR ENGROSSED: Removing a tax exemption for the warehousing and reselling of prescription drugs and providing tax relief for critical access pharmacies.)

SB 6228 removes a tax exemption for businesses that warehouse and resell prescription drugs, making this activity subject to a 0.5% tax on gross income under Washington's business tax code (RCW 82.04.280). It directly affects drug wholesalers and retailers registered with the federal DEA and licensed by Washington's Pharmacy Quality Assurance Commission. The bill repeals the existing exemption (RCW 82.04.272) and adds "warehousing and reselling drugs for human use pursuant to a prescription" to the list of taxable activities. The tax change takes effect January 1, 2027, aiming to increase state general fund revenue.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves tax exemption for drug wholesalers, closing a loophole to increase tax revenue under business tax code (RCW 82.04.280).95% confidence

Sub-Topics Business Taxes State Budget Tax Incentives

in committee · Washington · Senate Feb 26, 2026

SB 6211: Creating uniformity for the process by which cities planning under the growth management act implement real estate excise taxes.

SB 6211 standardizes how Washington cities and counties under the Growth Management Act can impose a 0.25% real estate sales tax to fund capital projects. It directly affects local governments by requiring them to use tax revenue exclusively for specific capital projects like streets, parks, airports, and affordable housing/homeless facilities, as defined in the bill. Key mechanisms include mandating voter approval for new taxes in certain areas, restricting fund use to projects in comprehensive plans, and allowing up to 25% of funds for affordable housing initiatives through established collaborations. The bill also preserves existing commitments for pre-1992 debt or projects while requiring documentation of future capital project funding.

Topics ✓ Budget & TaxesSupports Budget & TaxesStandardizes 0.25% real estate tax for capital projects (streets, parks, affordable housing), directing funds to public infrastructure per bill's explicit mandate.90% confidence ✓ HousingSupports HousingBill mandates tax revenue use for affordable housing/homeless facilities per specific capital project requirements, directly funding housing initiatives.95% confidence

Sub-Topics Business Taxes Revenue Sales Tax Affordable Housing Homelessness Property Taxes

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in committee · Washington · House Jan 12, 2026

HB 2359: Modifying requirements and allowed uses for certain funding related to providing and maintaining affordable housing and related services.

HB 2359 modifies Washington state law to change how a 0.1% sales tax revenue can be used for affordable housing and related services. It requires at least 60% of the funds to be spent on building or maintaining housing for low-income residents (at or below 60% of county median income), including veterans, the homeless, and people with disabilities, or on behavioral health facilities. The bill also mandates that 15% of new housing units must be reserved for people living near the facility, and allows local governments to use bonds and interlocal agreements to finance these projects. This law affects counties and cities that impose the tax, directing funds toward specific housing and services while ensuring community-focused allocation.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects 0.1% sales tax revenue to fund affordable housing for low-income groups, mandating 60% allocation for housing/services and 15% reserved locally, strengthening fiscal support for housing programs.95% confidence ✓ HealthcareSupports HealthcareBill requires 60% of funds for behavioral health facilities, explicitly supporting mental health services as part of healthcare policy.90% confidence ✓ HousingSupports HousingRequires 60% of funds for low-income housing (≤60% AMI) including homeless/veterans/disabled, mandates 15% units for nearby residents, directly advancing affordable housing access.95% confidence ✓ VeteransSupports VeteransBill requires 60% of funds for housing including veterans as eligible beneficiaries among low-income groups, explicitly targeting veteran housing needs.90% confidence

Sub-Topics Revenue Sales Tax Mental Health Affordable Housing Homelessness Housing Finance

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in committee · Washington · House Jan 22, 2026

HB 2326: Concerning emergency medical service levies.

HB 2326 establishes rules for property tax levies to fund emergency medical services (EMS) in Washington State. It allows counties, cities, emergency medical districts, and fire authorities to impose up to $0.50 per $1,000 in property value for up to 10 years or permanently, requiring voter approval (a 3/5 majority of registered voters) for initial or permanent levies. Funds must be used exclusively for EMS services, including personnel, equipment, and training, with separate accounting and public reporting required. The bill prohibits overlapping levies within the same geographic area and sets specific rules for countywide implementation, including requiring approval from 75% of cities over 50,000 population.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes property tax levy ($0.50/$1k) for EMS funding, requiring voter approval, directly funding essential public services through dedicated taxation.95% confidence ✓ HealthcareSupports HealthcareBill creates dedicated property tax funding for EMS services, ensuring financial support for emergency medical care infrastructure and personnel.95% confidence

Sub-Topics Property Tax Tags Public Safety

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in committee · Washington · House Jan 12, 2026

HB 2126: Providing an exemption for taxes on fuel used in school buses.

HB 2126 would exempt school districts in Washington state from paying taxes on fuel used in school buses. The bill amends state tax codes to specifically add school buses (operated per education laws) to the list of exempt fuel uses, directly affecting public school districts. This change would reduce operating costs for schools by eliminating a tax on fuel for all school bus operations within the state.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts school districts from fuel tax, reducing public school operating costs - direct tax relief for essential public services per tax policy indicators.95% confidence ✓ EducationSupports EducationExempts school districts from fuel tax, reducing operational costs and increasing available funds for education infrastructure and programs.95% confidence ✓ TransportationSupports TransportationExempts school bus fuel tax, reducing operational costs for public school transportation services, directly supporting transportation infrastructure funding.95% confidence

Sub-Topics Sales Tax School Transportation Public Transit Transportation Funding

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signed · Washington · Senate Mar 14, 2026

SB 5874: Concerning employers' information reporting for purposes of unemployment compensation.

Washington State's SB 5874 modifies penalties for employers who fail to properly report unemployment compensation information. It establishes a $25 penalty for late filings, with warning letters for first-time incomplete reports, followed by escalating fines ($75, $150, $250) for repeated errors within five years. Employers may avoid penalties for minor mistakes like software errors causing missing job titles, but intentional misreporting of payroll could lead to fines up to 10 times the underpaid amount. The bill directly affects Washington employers required to submit quarterly unemployment tax reports.

Topics ✓ Budget & TaxesSupports Budget & TaxesEnsures accurate unemployment tax collection via penalties, securing state budget revenue from employer contributions without altering tax rates.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentEnforces accurate employer reporting for unemployment benefits, ensuring workers receive full compensation and protecting their rights under employment standards.95% confidence

Sub-Topics Unemployment

in committee · Washington · House Jan 12, 2026

HB 2121: Exempting nonprofits and schools from certain sales and use taxes on services.

HB 2121 exempts nonprofits and schools from paying state sales and use taxes on specific services they purchase, such as repairs, cleaning, installation, and maintenance. The bill amends Washington's tax code (RCW 82.04.050) to clarify that these entities are not subject to tax on qualifying services used for their operations. This directly affects organizations like schools, charities, and community groups that previously paid tax on services like building repairs or landscaping. The policy change creates a clear exemption by updating tax definitions to exclude these services for eligible nonprofits and schools.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts nonprofits/schools from sales tax on services, providing tax relief for essential organizations.95% confidence ✓ EducationSupports EducationExempts schools from sales taxes on operational services (repairs, maintenance), reducing costs and freeing funds for educational use.90% confidence

Sub-Topics Sales Tax

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in committee · Washington · House Jan 12, 2026

HB 2187: Supporting employers providing child care assistance to employees by establishing a business and occupation and public utility tax credit.

HB 2187 creates a tax credit for Washington employers who provide child care assistance to their employees. It allows businesses to claim a 50% credit against their business and occupation tax for costs paid to registered child care providers, with key limits: a $50,000 annual cap per business and a $5 million statewide annual cap. The credit initially targets small businesses (under 100 full-time employees) and those joining child care consortiums (grouped businesses pooling resources) through 2028, then expands to all qualifying employers starting in 2029. The program expires on January 1, 2033, and requires electronic filing without separate applications.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 50% tax credit for small businesses providing child care, reducing business tax burden and incentivizing employer support through fiscal policy.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax credit for employers providing child care benefits, directly advancing worker support and employment standards by reducing employee childcare costs.95% confidence

Sub-Topics Business Taxes Tax Credits

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in committee · Washington · House Jan 12, 2026

HB 2147: Providing funding for school materials, supplies, and operating costs.

HB 2147 increases state funding for school materials, supplies, and operating costs in Washington State to address inflation-driven budget shortfalls affecting school districts. It establishes a new funding formula based on prototypical schools (600 high school students, 432 middle school students, 400 elementary students) with specific class size standards (e.g., K-3 at 17 students per teacher) and minimum staffing allocations. The bill requires transparency by mandating the Superintendent of Public Instruction to publish per-pupil funding reports online, which school districts must link to their websites. It also includes targeted provisions for career-technical education, lab science class size reduction, and high-poverty schools with over 50% free/reduced lunch eligibility. The legislation amends existing law (RCW 28A.150.260) to adjust funding allocations based on actual student enrollment and school type.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases state funding for school operations, directly allocating budget resources to public education services per bill summary.95% confidence ✓ EducationSupports EducationIncreases state funding for school materials, supplies, and operating costs with new formula and class size standards to address budget shortfalls.95% confidence

Sub-Topics K-12 Education School Funding Teachers

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