Budget & Taxes

in committee · Washington · Senate Jan 12, 2026

SB 5008: Supporting the use of assessment, diagnostic, and learning tools in public schools.

SB 5008 creates a temporary grant program (expiring December 31, 2028) to help Washington public schools, school districts, charter schools, and state-tribal education compact schools purchase or maintain digital assessment tools for math and English language arts in grades K-12. Schools applying for grants must outline plans for tool use and staff training, and funds prioritize districts based on need and geographic diversity. The program requires annual reports on fund usage, student demographics, and impacts on math and English test scores. This bill directly supports schools seeking tools to identify individual student needs and track progress.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates state grant program funding digital tools for public schools, advancing educational spending within state budget.95% confidence ✓ EducationSupports EducationCreates grant program for digital assessment tools in K-12, funds tool acquisition/maintenance, prioritizes need-based districts, requires staff training95% confidence

Sub-Topics K-12 Education Testing & Assessment

Track

signed · Washington · Senate May 20, 2025

SB 5314: Modifying the capital gains tax.

SB 5314 modifies Washington's capital gains tax by updating several provisions. It replaces an expiring business and occupation tax credit with a new, nonrefundable capital gains tax credit, designed to prevent double taxation on the same sale or exchange. The bill also clarifies definitions related to capital gains and losses, ensures consistent treatment for spouses and domestic partners, and establishes a late payment penalty waiver. Additionally, it introduces new reporting requirements for brokers and barter exchanges. These modifications are not estimated to change overall state or local tax collections.

Topics ✓ Budget & TaxesSupports Budget & TaxesPrevents double taxation on capital gains by replacing an expiring credit with a new nonrefundable credit, promoting fiscal fairness and closing a potential tax loophole.95% confidence

Sub-Topics Tax Credits

signed · Washington · House May 19, 2025

HB 2015: Improving public safety funding by providing resources to local governments and state and local criminal justice agencies, and authorizing a local option tax.

HB 2015 establishes a new grant program to improve public safety by providing direct financial support to local and tribal law enforcement agencies. These grants are intended to help agencies with hiring, retaining, and training law enforcement officers, as well as peer counselors and behavioral health personnel for co-response teams. To qualify for funding, agencies must meet specific requirements, including implementing state policies on use of force and de-escalation, participating in mandated trainings, and demonstrating compliance with data collection standards. Grant funds can cover up to 75 percent of entry-level salaries and benefits for new officers and support costs for required officer training.

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes local option tax to fund public safety grants, increasing budget allocation for law enforcement services and personnel training.95% confidence ✓ Criminal JusticeSupports Criminal JusticeFunds law enforcement hiring/training and behavioral health co-response teams with de-escalation requirements, advancing accountability and public safety reform.95% confidence

Sub-Topics Law Enforcement Policing Tags Public Safety

in committee · Washington · Senate Jan 15, 2026

SB 5754: Creating the Washington state public bank.

SB 5754 proposes creating a Washington State Public Bank modeled after North Dakota's bank, which would use state deposits to leverage infrastructure financing without new taxes or bonds. The bill would allow the state to hold reserves in this public bank, applying standard banking practice (keeping 10% in reserve) to generate up to 10 times the loan capacity - turning $1 billion in deposits into $10 billion for projects like roads or housing. This would replace costly bond financing (e.g., avoiding $10 billion in 20-year bond costs for $5 billion in projects) by keeping capital within Washington to fund public needs and generate profits for the state. The bank would directly affect state infrastructure projects and local communities by lowering borrowing costs and redirecting funds from private banks to public benefit.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates public bank to leverage state deposits for infrastructure without new taxes/bonds, promoting fiscal responsibility in budget management.95% confidence ✓ HousingSupports HousingBill explicitly lists housing as a potential project type for public bank financing, enabling funding for housing infrastructure.85% confidence ✓ TransportationSupports TransportationBill explicitly cites roads as a target infrastructure project for funding via public bank financing, directly advancing transportation infrastructure through non-tax revenue generation.95% confidence

Track

in committee · Washington · Senate Jan 12, 2026

SB 5092: Providing a sales and use tax exemption for qualifying farm machinery and equipment.

SB 5092 provides a sales and use tax exemption for qualifying farm equipment costing $10,000 or more purchased by small and medium-sized Washington farms with annual gross income under $2 million. The exemption applies to equipment like tractors, harvesters, and irrigation tools used directly in farming, but excludes road vehicles and motorcycles. Farms must submit exemption certificates to sellers, and the income threshold will adjust annually starting in 2031 based on the Consumer Price Index. The tax relief expires on October 1, 2035, with a requirement for a 2034 legislative review of its fiscal impact and effect on farm numbers.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exemption for qualifying farms, reducing state tax revenue to support agricultural businesses and equipment purchases.95% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Washington · Senate Jan 12, 2026

SB 5768: Expanding eligibility for the working families' tax credit to everyone age 18 and older.

SB 5768 expands Washington State's Working Families Tax Credit to include all low-income residents aged 18 and older, removing previous age restrictions. It affects Washington residents who file federal tax returns, pay state sales/use tax, and meet income limits (e.g., $300 for those with no children, up to $1,200 for those with three+ children). The bill maintains existing credit amounts, phase-out rules based on income, and inflation adjustments, while adding a new eligibility category for those aged 18+ who otherwise qualify under federal tax code rules. This change directly broadens access to the refundable credit for younger adults who previously may have been excluded due to age.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax credit eligibility to low-income residents 18+, providing direct tax relief to middle/lower income households without increasing taxes or reducing funding.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExpands tax credit eligibility to all low-income workers 18+, increasing financial support for labor force participation and income stability.95% confidence

Sub-Topics Income Tax Sales Tax Tax Credits

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signed · Washington · House May 20, 2025

HB 2061: Regarding concession fees by duty-free sales enterprises.

HB 2061 establishes a new concession fee for duty-free sales enterprises operating within Washington state. These businesses will pay a fee equal to 0.10 (10%) of their gross proceeds from merchandise sales. The revenue collected from this fee will be split, with half directed to the statewide tourism marketing account and the other half deposited into a new sustainable aviation fuel account. The sustainable aviation fuel account is designated to support research, development, and infrastructure for sustainable aviation fuel.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 10% fee on duty-free sales, directing revenue to tourism marketing and sustainable aviation fuel accounts, funding specific state programs.95% confidence ✓ TransportationSupports TransportationFunds sustainable aviation fuel research/development, directly supporting transportation infrastructure innovation within the aviation sector.95% confidence

Sub-Topics Airports

in committee · Washington · Senate Jan 12, 2026

SB 5405: Updating the inflation adjustment for the estate tax exclusion amount.

SB 5405 updates Washington's estate tax exclusion amount to adjust annually for inflation starting in 2026. It replaces the current fixed $2,193,000 threshold with a formula that increases the exemption each year based on the Seattle metropolitan area consumer price index (CPI). The adjustment multiplies the base amount by (1 + inflation rate) and rounds to the nearest $1,000, ensuring the exclusion keeps pace with rising costs. This directly affects Washington residents and others with taxable estates exceeding the inflation-adjusted threshold, particularly for decedents dying in 2026 or later.

Topics ✓ Budget & TaxesSupports Budget & TaxesAdjusts estate tax exclusion for inflation to maintain fiscal responsibility, preventing unintended tax increases on estates due to rising costs.95% confidence

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in committee · Washington · Senate Jan 12, 2026

SB 5803: Regulating tobacco and nicotine products.

SB 5803 bans the sale of all flavored tobacco and nicotine products (including menthol, candy, and fruit flavors) and entertainment vapor products with gaming features like video displays. It directly affects retailers selling these products and aims to reduce youth access, as 88% of youth vapers use flavored products. The bill increases taxes on all tobacco products and requires retailers to comply with new restrictions on flavored items. These changes are intended to curb youth initiation and addiction, based on data showing flavored products drive 80% of youth tobacco use.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill explicitly increases taxes on tobacco products, directly impacting state revenue generation and fiscal management under Budget & Taxes.95% confidence

Track

in committee · Washington · House Jan 12, 2026

HB 1805: Creating a local sales and use tax to fund services for children and families that enhance well-being, promote mental health, and provide early interventions.

HB 1805 proposes a local 0.01% sales and use tax in Washington counties to fund additional services for children and families. The tax would generate revenue specifically for mental health support, early intervention programs, child care, school-based health services, shelter, rental assistance, and transportation. Counties could implement this tax via resolution or ordinance, with funds restricted to the listed services that address gaps in current Medicaid and behavioral health programs. The bill aims to support children and families early to improve well-being and reduce long-term needs like youth violence and substance use.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates a new local 0.01% sales tax to fund mental health, childcare, and family services, directly increasing public funding for essential programs within budget constraints.95% confidence ✓ EducationSupports EducationFunds school-based health services (directly supporting student well-being and access to education) and addresses gaps in educational support systems through targeted funding.95% confidence ✓ HealthcareSupports HealthcareFunds mental health, early interventions, school-based health services, and behavioral health programs through new local tax to address Medicaid gaps.95% confidence ✓ HousingSupports HousingBill explicitly funds 'rental assistance' and 'shelter' as core services, directly supporting affordable housing and tenant stability.95% confidence

Sub-Topics Sales Tax Student Health Medicaid Mental Health Renters

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