HB 2713 would impose a 1% surcharge on the taxable income from operating private detention facilities in Washington State, effective July 1, 2026. It directly affects operators of such facilities that generate over $1 million in annual Washington gross receipts. The surcharge applies to the portion of income specifically tied to running these facilities, in addition to existing business taxes. This policy change would increase tax obligations for qualifying private detention facility operators without altering the definition of the facilities themselves.
HB 2730 clarifies how Washington state will evaluate whether tax incentives for the aerospace industry remain effective. It requires the Joint Legislative Audit and Review Committee to annually assess aerospace employment in Washington compared to other states using a five-year average of employment data starting in 2029. If Washington’s share of aerospace jobs stays the same or grows relative to other states, the tax incentives will automatically extend until 2040. The bill directly affects aerospace companies receiving tax preferences by tying their continued eligibility to measurable workforce outcomes. It amends a 2013 provision to establish this specific employment-based metric for evaluating the incentives' success.
HB 2733 limits how municipalities and public facilities districts can spend lodging tax revenues on tourism facilities, capping operational support at 5% of annual lodging tax revenue. It requires applicants to demonstrate how funds will increase tourism by showing projected travel patterns (e.g., overnight stays away from home or trips over 50 miles). Municipalities must use a local advisory committee to review applications and approve funding based on these projections, and recipients must report actual tourism impacts annually. The bill also mandates public reporting of these results to local governments and the legislature.
HB 2727 creates a state-funded grant program to help community and technical college students pay for public transportation. It requires the state transportation department to provide grants to transit agencies that partner with colleges to offer free or reduced transit fares for students enrolled in degree or certificate programs. To qualify, transit agencies must submit proposals detailing program goals, cost-reduction methods, college partnerships, and long-term sustainability plans. The program aims to lower transportation barriers for these students, with pilot projects required to report outcomes to the legislature within six months of completion.
HB 2742 creates an annual sales and use tax holiday in Washington for qualifying items priced at $500 or less per item. It exempts these items from both sales tax (under RCW 82.08) and use tax (under RCW 82.12) during a four-day period each year, specifically from 12:00 a.m. on the Friday after Thanksgiving through 11:59 p.m. on the Monday after Thanksgiving. The tax holiday directly affects all Washington residents purchasing qualifying items during this window, providing temporary financial relief on everyday goods like clothing, school supplies, or electronics. The Department of Revenue must establish administrative rules and provide taxpayer guidance to implement the holiday, consistent with existing tax agreements.
HB 2743 reduces Washington state property taxes by $2.1 billion for 2027, applying to all property owners statewide. The bill amends tax code to cap the combined state property tax rate at $3.60 per $1,000 of assessed value and mandates this specific $2.1 billion reduction in the 2027 tax levy. It does not change tax rates for prior years but sets a permanent cap on future combined tax levies. This is a direct adjustment to the state's property tax collection amount, not a rate change for individual properties. The bill affects all taxable property within Washington, as the tax is statewide.
HB 2711 adjusts Washington State's motor vehicle fuel tax structure, directly affecting fuel licensees (gas stations, distributors) and fuel suppliers. It adds new tax rates, including 6 cents per gallon for regular fuel starting July 2025 and 3 cents per gallon for special fuel starting July 2027, while creating automatic annual 2% increases for both regular and special fuel taxes beginning July 2026. The bill specifies detailed calculations for these annual adjustments, requiring the state treasurer to recalculate rates each July 1 based on prior tax rates and rounding to the nearest thousandth of a dollar. It also clarifies when fuel taxes apply, such as when fuel is removed from terminals, entered into the state, or sold to unlicensed entities.
HB 2719 creates the empowerED scholarship program, providing education savings accounts for foster care students in Washington state (ages 5-21) who are in care or have aged out. The program allows foster parents, caregivers, or guardians to use state-funded accounts - managed via a state-administered debit card - to cover qualified education expenses at private schools, home-based instruction, or other approved services. It explicitly permits religious private schools to participate, aligning with recent U.S. Supreme Court rulings on education funding. The bill aims to address educational instability faced by foster care students by ensuring funding follows the student across placements, with strict oversight to prevent misuse of funds.
HB 2720 imposes a $0.58 monthly fee per enrolled member on health carriers, self-funded employer plans, and multiemployer health plans operating in Washington starting January 2027. This fee funds behavioral health crisis services (like mobile response teams and crisis centers) for people not covered by Medicaid or who aren’t enrolled in Medicaid, addressing gaps where current insurance reimbursement systems fail. The bill creates a dedicated funding source to replace inconsistent billing to insurers, ensuring these critical services remain accessible without relying on Medicaid or taxpayer subsidies. It directly affects health plans covering Washington residents and aims to sustain crisis care access as mandated by existing mental health parity laws.
HJR 4213 proposes amending Washington's state constitution to permit an income tax. If approved, it would allow the legislature to tax income above $1 million annually (adjusted yearly for inflation), with a maximum tax rate of 9.9%. The bill sets a threshold that excludes individuals earning $1 million or less per year from the tax, and requires annual inflation adjustments to this threshold using the Seattle-area consumer price index. This constitutional change must be voted on by Washington voters in the next general election.
