SB 6027 allows Washington counties and cities to impose up to a 0.1% sales tax to fund affordable housing and related services. It requires at least 60% of the revenue to support housing construction, rehabilitation, or services for specific groups including homeless individuals, veterans, seniors, and people with disabilities. The bill limits how funds can be used (capping supplanting of existing local funds at 10%) and mandates that counties coordinate with cities on projects, prioritizing 15% of housing units for residents with local ties. It also permits using funds to offset state/federal reductions and authorizes bonds for housing development.
SB 6149 updates Washington state's definition of "rural county" to determine eligibility for a dedicated sales tax funding public facilities. A county qualifies as rural if it has fewer than 100 people per square mile, lacks any city over 45,000 residents, or is smaller than 225 square miles. Rural counties can then impose a sales tax (up to 0.09%, or 0.04% for certain counties) to fund public facilities supporting job creation, affordable workforce housing, or economic development offices. Funds must be used for specific projects listed in economic development plans and reported annually to ensure alignment with job growth and housing goals.
HB 2487 corrects a court interpretation that allowed non-insurers (like pharmacy benefit managers) to wrongly avoid business and occupation taxes by misusing an insurance tax exemption. The bill rewrites the exemption language to require businesses claiming it to prove they paid premium taxes to the state, aligning with the original 1935 intent to prevent double taxation on insurers. It consolidates two tax exemption sections and applies retroactively to tax periods starting October 2, 2019, to ensure businesses that previously misused the exemption pay what they owe. This directly affects insurers and businesses claiming the exemption, aiming to protect state revenue for schools and services.
SB 6093 imposes a tax on large companies' payroll expenses above a threshold (based on the additional Medicare tax threshold) to create the Well Washington Fund. Starting July 1, 2027, 51% of the tax revenue will fund healthcare (including Medicaid), higher education, food assistance programs, and housing initiatives. The bill directly affects large Washington-based companies with significant payroll, while supporting residents relying on these public services. The fund will help offset state budget shortfalls caused by federal funding cuts, with revenues specifically designated for these programs.
HB 2258 allows Washington cities and counties to impose a monthly household fee of up to $2.50 per dwelling unit to fund animal control and shelter systems. It directly affects local governments (which can adopt the tax via ordinance) and residents (who pay the fee), while requiring voter approval for new taxes or rate changes. The bill specifies that revenue must cover operation, maintenance, and capital needs of animal control systems owned or contracted by local entities, with annual rate increases capped at 2% or the inflation rate. It includes detailed procedures for voter referendums and defines key terms like "dwelling unit" and "parcel." The law takes effect January 1, 2027.
HB 2584 exempts Washington farmers with annual gross sales or harvested value under $2 million from sales and use taxes on qualifying farm equipment costing $10,000 or more used directly for crop production. It covers machinery like tractors, harvesters, and irrigation tools but excludes road vehicles and motorcycles. Farmers must provide exemption certificates to sellers and maintain records, with the exemption expiring October 1, 2036. This policy reduces tax burdens for small and medium-sized farms to support agricultural competitiveness.
HB 2347 repeals the luxury aircraft tax by eliminating four specific statutes (RCW 82.48A.010 to 82.48A.040) that imposed a tax on aircraft valued over $500,000, including a use tax exception and administrative requirements. This repeal would remove the tax obligation for owners of high-value aircraft who would have been subject to the tax under the 2025 law. The bill also amends RCW 82.32.145 to adjust rules for holding responsible individuals liable for unpaid trust fund taxes, but this change is unrelated to the luxury aircraft tax. The bill has been prefaced and referred to the House Transportation Committee for further review.
HB 2650 creates a tax deferral program for property owners developing affordable housing on underdeveloped land (like surface parking lots) in qualifying cities. It requires owners to complete construction within three years, offer housing to low/moderate-income households (costing ≤30% of income), and submit verification to cities within 30 days of a certificate of occupancy. Cities must then confirm compliance with affordability and construction standards before the Department of Revenue finalizes the sales/use tax deferral. The bill directly affects property developers, local cities administering the program, and the Department of Revenue. If requirements aren’t met, cities can deny the deferral or require interest on nonqualifying taxes.
Washington State's SB 6327 would exempt both baby and adult diapers from the state's sales and use tax starting October 1, 2026. This applies to all diapers (washable or disposable) worn by people of any age who require incontinence products, directly reducing costs for families purchasing these essential items. The bill amends Washington's tax codes (chapters 82.08 and 82.12 RCW) to remove these products from taxable sales and use categories. The legislature states this permanent tax change aims to lessen the financial burden on Washington households.
HB 2615 codifies Washington’s voluntary tax disclosure program and creates a temporary tax amnesty period for eligible taxpayers. It allows businesses to disclose past tax liabilities (for business and occupation, sales, and use taxes) due before July 1, 2026, by filing all required returns and paying full tax amounts by August 17, 2026, with penalties and interest waived. To qualify, taxpayers must not have committed fraud, evasion, or misrepresentation, must not be under audit or in bankruptcy, and must have no prior evasion penalties or criminal tax prosecutions. The program does not waive penalties for tax evasion (RCW 82.32.090) or reseller permit misuse (RCW 82.32.291), and requires full payment of all tax liabilities by October 1, 2026.
