House Bill 2077 establishes a new tax on certain vehicle manufacturers. This tax applies to profits generated from surplus zero-emission vehicle (ZEV) credits, which are earned when a manufacturer exceeds the state's ZEV sales requirements. The bill requires the Department of Ecology to share manufacturers' ZEV credit activity with the Department of Revenue, and manufacturers must report the prices of ZEV credit transactions. The collected tax revenue is intended to be reinvested into programs that further promote cleaner vehicles.
SB 5400 establishes a Washington state grant program to support local news journalism by funding news organizations that employ journalists covering community issues. Eligible applicants - including newspapers and digital platforms meeting specific criteria - must employ at least two to three journalists per quarter (with flexibility for smaller operations) to qualify for grants proportional to journalist hours worked. The program targets underserved communities, aiming to counter declining newsroom staff and advertising revenue by directly supporting journalist employment. Grants require reporting on progress and usage, with the Department of Commerce administering the program based on defined eligibility standards for "news journalists" and "qualifying publications."
Senate Bill 5682 extends a tax credit for businesses participating in the Washington customized employment training program. This credit allows businesses to claim 50% of their payments made to the employment training finance account. The bill moves the tax credit's expiration date from July 1, 2026, to July 1, 2031, with the goal of aiding in attracting and retaining jobs in Washington. It also updates the reporting requirements for the college board regarding the program's use and distribution.
HB 1277 creates a tax exemption for critical access hospitals located on islands within 25 miles of a military installation, eliminating sales and use taxes on qualifying medical equipment (like diagnostic machines) and supplies (such as gloves, syringes, and bandages). The exemption applies to purchases and use of these items beginning January 1, 2026, and expires January 1, 2036. It excludes construction materials, office equipment, and non-medical vehicles. This policy directly affects designated island-based hospitals by reducing their operational costs for essential medical resources.
HB 1734 creates a state grant program to fund capital improvements for facilities used in outdoor learning. It provides competitive grants to tribes, local governments, nonprofits, and others to build, renovate, or rehab facilities that expand access to outdoor education for public school students, particularly in underserved communities. Key provisions require projects to increase student capacity or remove participation barriers, mandate facility maintenance for a set period, and ensure funds are used solely for outdoor learning. The grants are intended to complement existing outdoor education programs by improving infrastructure, not operating costs, with funding requests to be submitted starting in 2027.
HB 1320 increases business and occupation tax rates for multiple sectors to fund state programs. It raises rates for extractors and manufacturers to 0.5324%, semiconductor manufacturers to 0.3025% (with employment requirements), and real estate brokers to 1.65%. The bill also creates a temporary 0.31944% rate for aviation repair stations until 2040. Businesses claiming semiconductor tax preferences must maintain 90% of their three-year average employment or reimburse 50% of the tax benefit. All rate changes are intended to generate revenue for state programs benefiting Washington residents, as specified in the bill's title.
This bill allows qualifying Washington counties to impose a 0.1% sales tax to fund behavioral health diversion programs. The tax must be used exclusively for initiatives that prevent individuals with behavioral health needs from entering or remaining in the criminal justice system - such as diverting people facing up to class C felony charges, reducing repeated competency evaluations, and creating county-wide strategies for housing and support. Counties must first have a state-approved behavioral health diversion plan before implementing the tax. The law is contingent on another bill (HB 1218) being enacted by August 1, 2025.
SB 5650 allows Washington counties and cities to impose a local excise tax of up to 2% on the retail sale of cannabis products, including concentrates and infused items, but only with voter approval through a ballot measure and for a maximum of seven years. Counties must act before July 1, 2027, or cities within the county may then impose the tax instead. The tax, which is in addition to existing state taxes, will be collected by the state’s Liquor and Cannabis Board and distributed monthly, with 15% of the revenue going to the county and the remainder distributed based on where licensed retailers generate revenue. The bill prohibits counties and cities within the same county from imposing the tax simultaneously.
HB 2049 aims to enhance funding for K-12 education and communities by modifying state and local property tax authority and adjusting the school funding formula. The bill revises the maximum dollar amount school districts can levy for enrichment, setting it as the lesser of $2.50 per $1,000 of assessed value or a per-pupil limit. This per-pupil limit is updated with specific "inflation enhancements" through 2030 and establishes a new base amount starting in 2031, impacting funding based on student enrollment. Additionally, it adjusts how the state provides local effort assistance funding to supplement these school district enrichment levies.
HB 2024 creates a state property tax exemption for Washington homeowners' primary residences, reducing their state tax burden. It exempts either $100,000 of a home's assessed value or 60% of the county's median home value (whichever is greater), applied after other existing exemptions. This directly benefits primary residence owners - especially fixed-income households and those at risk of displacement - by lowering annual state property tax costs. The exemption applies only to state levies (not local taxes) and requires an annual application by April 1st, with verification to ensure it applies to only one residence.
