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.
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.
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.
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.
SB 5939 creates the "Washington is simply unaffordable fund" to reimburse low-income residents for moving expenses if they relocate to a more affordable state. The fund, funded by a $7 million appropriation, helps residents earning below 300% of the federal poverty level who move to states ranked higher in affordability than Washington based on an annual economic report. To qualify, claimants must attest that Washington's unaffordability was the primary reason for their move and provide proof of documented moving costs. The bill directly affects working-class Washington residents seeking relocation due to high costs of housing, food, and gas.
SB 5949 clarifies a tax exemption for insurers to close a loophole allowing non-insurance businesses (like pharmacy benefit managers) to avoid state business taxes. It amends RCW 82.04.320 to require that only insurers who pay premium taxes to the state can claim the exemption, reversing a 2024 court decision that broadly interpreted the exemption. The bill applies retroactively to tax periods starting October 2, 2019, ensuring businesses that previously avoided taxes under the broad interpretation now comply. It repeals an outdated exemption section (RCW 82.04.322) to streamline tax administration. This change directly affects insurers and businesses previously using the loophole to avoid paying business and occupation taxes.
HB 2115 restores a 1985 tax exemption that removes sales tax from transactions involving precious metal bullion (like gold, silver, platinum, and palladium) and monetized bullion (coins or money made from precious metals). It directly affects businesses selling these items by exempting the bullion itself from state sales tax, though tax applies only to commissions earned on transactions. The bill defines "precious metal bullion" as refined metals (not items like jewelry) and excludes such sales from tax calculations under Washington’s tax code. It applies retroactively from January 1, 2026, to correct a 2025 repeal of the original exemption.
HB 2159 creates a dedicated "preK promise account" managed by the state treasurer to fund Washington's state-funded early childhood education programs. The account receives and tracks donations, grants, and gifts separately from each source, and funds can only be used for eligible children in the existing early childhood education program (RCW 43.216.510). Unlike typical state funds, this account does not require annual appropriations for spending, and any leftover funds accumulate rather than returning to the general fund. The bill directly affects early childhood education programs and the children they serve, establishing a new funding mechanism for these services.
HB 2089 modifies Washington's tax code to redirect revenue from a business tax preference for "community banks" toward wildfire response funding. It updates the definition of "community bank" from "operating in ten or fewer states" to align with the federal standard ($10 billion or less in assets), reversing a 2012 policy that allowed 65% of tax savings ($91.6 million in 2023) to flow to non-community banks. Starting November 2027, the state will transfer annual revenue gains from this tax change directly into the wildfire response account, which funds forest restoration and community resilience. This bill directly affects financial institutions previously qualifying under the outdated definition, while ensuring funds support wildfire mitigation as mandated by the 2021 wildfire response account.
SB 5819 amends Washington State’s tax code to classify paid protestor services as temporary staffing services, making them subject to state retail sales and use taxes. This change directly affects businesses that hire individuals to provide paid protest services, requiring them to collect and remit applicable taxes on these services. The bill updates the definition of "retail sale" under RCW 82.04.050 to explicitly include such services within taxable temporary staffing. It does not alter tax treatment for other services like janitorial work or construction. This is a procedural tax code amendment with no new tax rates or exemptions.
