HB 1480 would allow any Washington county to impose a 0.5% tax on real estate sales to fund affordable housing, but only with voter approval. The tax revenue must be used exclusively for developing housing for very low, low, and moderate-income residents, including construction, rehabilitation, and maintenance. Counties must create a spending plan with public input before seeking voter approval, and the tax would be collected from both buyers and sellers (with at least half of the burden on the buyer). The tax would take effect 30 days after voter approval.
HB 1704 redirects cannabis tax revenue to specific state and local programs. It allocates 52% of funds to the state basic health plan trust fund, 11% to the health care authority for youth substance use prevention programs and surveys, and 17% (7% based on cannabis retail tax revenue in a jurisdiction and 10% ratably by population) to counties, cities, and towns. Local governments with licensed cannabis retailers receive funds proportional to their retail tax revenue, while all jurisdictions allowing cannabis businesses get additional population-based funding. The bill also funds education programs, poison control, and research on cannabis effects.
SB 5460 creates a new funding source by directing 30% of state sales tax revenue from large stadiums (with specific size requirements) into community development accounts. This funding supports county-level community preservation authorities in areas affected by major public projects, with funds split between operating and capital needs. Authorities must use the money for economic development, safety improvements (like addressing homelessness impacts), and housing initiatives (including low-income units). The program expires in 2037 but requires a legislative review by 2034 to assess its impact on communities.
SB 5806 creates a voluntary tax disclosure program allowing unregistered taxpayers to come forward, pay overdue taxes without penalties or interest, and register permanently. It directly affects businesses or individuals who engaged in taxable activities without proper registration but have not committed fraud or evasion. To qualify, applicants must submit a registration application before department contact, disclose all past taxable activity, and attest under penalty of perjury. The program runs from July 1 to September 30, 2025, and does not apply to taxes already paid before July 1, 2025, or to unremitted sales taxes collected from buyers.
This bill proposes a constitutional amendment requiring that revenue from road usage fees, vehicle miles traveled charges, or similar fees must be spent **exclusively** on highway-related projects and services. It would directly affect how Washington State allocates funds from these specific fees, mandating they cover road construction, maintenance, traffic systems, and related expenses like bridge operations or ferry services tied to highways. The amendment clarifies that such fees cannot fund general state programs, while excluding existing license fees and fuel taxes from this requirement. Voters would decide on this change at the next general election, as the amendment requires ratification. (Note: This is a procedural constitutional amendment, not a direct law.)
HB 1560 imposes a 7.5% tax on the portion of annual compensation exceeding 10 times the state's average wage for the five highest-paid hospital employees without direct patient care, plus the hospital's lead administrator if not included. It directly affects nonprofit hospitals in Washington that pay certain executives excessive compensation, as defined by the bill. The tax revenue will fund programs to improve healthcare access, particularly for vulnerable populations and reproductive care. The tax applies to compensation reported under state health reporting rules, beginning in 2027 for the 2026 tax year.
SB 5796 imposes a 5% excise tax on large Washington employers for payroll expenses exceeding the Social Security wage threshold (currently $168,600 per employee annually). It directly affects employers with over $7 million in annual payroll - estimated to be 17% of businesses - while exempting smaller businesses. The tax revenue funds public schools, health care, and social services by depositing funds into the state general fund. Employers must pay the tax directly (not deducted from employee wages), with the tax applying only to wages above the Social Security limit.
SB 5026 redirects a growing portion of Washington’s vehicle sales tax revenue to transportation funding. Starting in 2026, 16.66% of tax revenue from all new and used vehicle sales (including private-party sales) will fund transportation, increasing by 16.66% each year until 2031, when 100% will be dedicated to this purpose. The bill excludes certain vehicles like farm tractors, off-road vehicles, snowmobiles, and bicycles from this tax allocation. This policy change affects all vehicle buyers and sellers in Washington, with the tax revenue directly supporting transportation infrastructure projects.
SB 5799 creates a youth behavioral health account funded by a 0.4% business and occupation tax on social media platforms' gross income in Washington State, effective January 2026. The tax applies to companies operating social media platforms (defined as services enabling user interaction and content sharing), excluding email, gaming, or non-profits. Funds will support three specific programs: telebehavioral health pilot services for school-aged youth, the governor's children and youth multisystem care coordinator, and implementation of the Washington Thriving prenatal-through-25 behavioral health strategic plan. The bill directly affects social media companies operating in Washington, directing tax revenue exclusively toward youth behavioral health services for individuals aged prenatal to 25.
SB 5547 increases funding for local governments by redirecting cannabis tax revenue. It allocates 1.5% of cannabis tax revenue to cities and towns where licensed retailers operate (based on their proportional revenue share) and 3.5% to counties and cities/towns ratably by population (with eligibility requiring no bans on cannabis businesses). These distributions replace previous formulas and require annual reporting by the state board. The bill directly affects municipalities with cannabis retailers and those meeting siting criteria, without creating new taxes.
