Budget & Taxes

in committee · Washington · House Jan 12, 2026

HB 1284: Eliminating the investment income business and occupation tax deduction for corporations and other business entities.

HB 1284 eliminates a tax deduction that allowed corporations and other business entities to exclude investment income from Washington's business and occupation tax. This affects companies earning income from investments (like stocks or loans), particularly those investing outside Washington, which previously avoided tax on that income. The bill amends tax code to remove this deduction, with a small exception allowing deductions for investment income under 5% of annual gross receipts. The legislature states this change aims to close a perceived tax loophole, increase revenue for public schools, and create fairness by requiring all businesses to pay tax on investment income earned within the state.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates corporate tax loophole for investment income, closing a fiscal gap that previously allowed tax avoidance on out-of-state investments, aligning with tax loophole closure indicator.95% confidence

Sub-Topics Business Taxes

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signed · Washington · Senate May 20, 2025

SB 5794: Adopting recommendations from the tax preference performance review process, eliminating obsolete tax preferences, clarifying legislative intent, and addressing changes in constitutional law.

Senate Bill 5794 aims to improve how tax preferences are managed in Washington state. It implements recommendations from the state's tax preference performance review process, which evaluates the effectiveness of existing tax exemptions. The bill eliminates several tax preferences identified as obsolete or unused and clarifies the legislative intent behind others. This includes updating specific tax code sections and modifying effective or expiration dates for certain industries, such as manufacturing of seafood and dairy products.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates obsolete tax preferences, closing loopholes and improving tax code management per performance review process.95% confidence

Sub-Topics Business Taxes

in committee · Washington · House Jan 12, 2026

HB 1666: Repealing the estate tax.

HB 1666 would repeal Washington's estate tax, which applies to estates exceeding certain thresholds upon the death of an individual. This directly affects individuals and families with significant assets who would have owed tax on inherited property. The bill removes all existing estate tax laws from state code (including definitions, tax calculations, and filing requirements) and takes effect for deaths occurring on or after August 1, 2025. The legislation aims to eliminate a tax the state legislature claims discourages residency and investment.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals estate tax, eliminating a state revenue source and directly weakening the tax system's structure.95% confidence

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in committee · Washington · Senate Jan 12, 2026

SB 5088: Authorizing counties to impose a public utility tax.

This bill would allow Washington counties to impose a local tax on utility companies (like water, electricity, and gas providers) based on their gross income from services within the county. Counties could set a tax rate up to 3%, which utilities would add to customer bills and clearly label. The tax would apply to businesses (e.g., factories, data centers) but not residential customers unless businesses also get exemptions. Counties must follow specific rules for when to start the tax and cannot create general residential exemptions. This is a proposed revenue tool for local governments, not yet law.

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes counties to impose utility taxes (up to 3% on business services), creating new local revenue for county budgets and public services.95% confidence

Sub-Topics Business Taxes

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in committee · Washington · Senate Jan 12, 2026

SB 5638: Funding health care access by imposing an excise tax on the annual compensation paid to certain highly compensated hospital employees.

SB 5638 imposes a 7.5% tax on the portion of annual compensation exceeding 10 times the state's average wage for the top five non-clinical employees and the hospital's lead administrator at Washington hospitals. The tax, effective January 1, 2026, applies to compensation reported to the Department of Health under state law. Revenue from this tax will fund programs to expand affordable health care access, including reproductive services and health equity initiatives. The bill targets hospitals with high executive pay levels, using the tax as a funding mechanism rather than penalizing specific hospital practices.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 7.5% tax on high hospital exec compensation to fund health care access programs, directly advancing public service funding through targeted taxation.95% confidence ✓ HealthcareSupports HealthcareBill imposes tax on hospital executives to fund expanded health care access programs including reproductive services and health equity initiatives.95% confidence

Sub-Topics Sales Tax Hospitals

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in committee · Washington · Senate Jan 12, 2026

SB 5146: Creating a portal to identify opportunities for increased government efficiency.

SB 5146 proposes creating a public portal where state employees and residents can report wasteful, duplicative, or inefficient government spending. The portal would require users to submit details about specific agencies, policy areas, and examples of inefficiency (with anonymous options), and it must be accessible to people with disabilities and mobile users. Submitted reports would be sent annually to legislative budget committees, and state employees whose suggestions lead to actual savings may qualify for cash awards. The bill directly affects state employees and the public by providing a structured way to identify government waste, aiming to improve taxpayer spending efficiency. It does not change existing laws but establishes a new process for gathering and reviewing efficiency suggestions.

Topics ✓ Budget & TaxesSupports Budget & TaxesPromotes fiscal responsibility by enabling public reporting of wasteful spending to identify savings opportunities, aligning with budget efficiency goals.85% confidence

Sub-Topics Government Spending State Budget

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in committee · Washington · House Jan 12, 2026

HJR 4205: Abolishing excess enrichment and capital levies.

HJR 4205 proposes a constitutional amendment to cap Washington's total property tax levies at 1% of a property's true value annually. This would affect all Washington property owners by limiting annual tax rates, with specific exceptions allowing school/fire districts to exceed the cap for up to 4-6 years for facility projects, and taxing districts to exceed it for bond payments on capital projects. The amendment requires voter approval at the next general election and would replace the current constitutional tax limit in Article VII, section 2. It does not change current tax rates but sets a new annual ceiling for all property taxes combined.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill caps property tax levies at 1% annually, directly limiting tax rates and government revenue from property taxes, aligning with 'restricts/limits' indicators.95% confidence ✓ EducationSupports EducationBill allows school districts to exceed tax cap for facility projects, preserving funding for school infrastructure despite overall property tax limitation.95% confidence

Sub-Topics Business Taxes Property Tax School Funding

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in committee · Washington · House Jan 12, 2026

HB 2055: Establishing a state revenue limit and directing excess revenues be deposited in the budget stabilization account.

HB 2055 establishes a yearly limit on Washington state revenue growth, calculated using inflation and population changes, to prevent budget expansions without new funding. It requires the state revenue limit committee to adjust this cap annually based on actual collections and economic data, and lowers the limit if state programs shift funding away from the general fund. The bill mandates that any revenue exceeding this limit - after accounting for constitutional transfers - must be deposited into the budget stabilization account by June 30 each year. This directly affects state budgeting processes and the management of the stabilization fund, which holds reserves for economic downturns.

Topics ✗ Budget & TaxesOpposes Budget & TaxesLimits annual revenue growth to prevent budget expansions, directing excess funds to stabilization instead of new spending. Directly restricts discretionary budget growth.95% confidence

Sub-Topics Government Spending Revenue State Budget

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in committee · Washington · House Jan 12, 2026

HB 1851: Prohibiting the use of state appropriated funds by institutions of higher education to repair property damaged in a disruptive activity.

HB 1851 prohibits public colleges and universities in Washington from using state funds or tuition/fee revenue to repair property damaged during demonstrations, riots, or other disruptive activities that disrupt campus operations. The bill applies directly to public higher education institutions that permit such events causing property destruction. Key provisions require institutions to cover repair costs themselves using non-state, non-tuition funds, rather than relying on public or student-generated revenue. This policy change specifically targets funding sources for repairs, without restricting protest activities themselves.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRestricts state budget use for campus repairs from disruptive activities, limiting government spending on this specific item by mandating non-state funds.92% confidence ✗ EducationOpposes EducationRestricts state funding for repairs after disruptions, limiting institutional resources for higher education infrastructure maintenance.90% confidence

Sub-Topics Higher Education

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in committee · Washington · House Jan 12, 2026

HB 1214: Expanding eligibility for the working families' tax credit to everyone age 18 and older.

HB 1214 expands Washington's Working Families' Tax Credit to include all residents aged 18 and older, removing a prior age restriction that limited eligibility to those under 18. The bill updates eligibility rules in the tax code to allow individuals who meet federal credit requirements (including filing a federal return and meeting income thresholds) to qualify regardless of age, as long as they were 18 or older by the end of the prior tax year. It maintains existing credit amounts ($300-$1,200 based on children) and calculation methods, with annual inflation adjustments. This change directly affects low-income Washington residents aged 18+ who previously may have been excluded due to age.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax credit eligibility to all 18+ residents meeting federal requirements, providing direct tax relief for lower-income individuals as part of state fiscal policy.95% confidence

Sub-Topics Income Tax Tax Credits

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