SB 5673 creates a sales and use tax exemption for manufacturing facilities and "green manufacturing facilities" (defined as facilities certified by a state or nationally recognized sustainability organization). It exempts purchases of construction materials, equipment, labor, and services used to build or maintain these facilities. To qualify, facilities must apply for an exemption certificate (no new certificates issued after July 2035), submit annual tax performance reports, and comply with specific reporting requirements. The exemption expires January 1, 2036, with the full law ending January 1, 2037.
SB 5700 creates a secure state database to verify medical cannabis patient authorizations and tax exemptions. It directly affects medical cannabis patients (who receive recognition cards), healthcare providers, cannabis retailers, and the Liquor and Cannabis Board. The key mechanism requires the database to allow retailers to verify patient cards, let the Liquor and Cannabis Board confirm tax exemption eligibility under state law, and ensure data privacy through strict security standards. This replaces manual verification processes, streamlining tax exemption checks while protecting patient information.
HB 1471 transfers $1.63 billion from Washington's budget stabilization account to the state general fund to support critical health, welfare, and public safety services in fiscal year 2026. It requires the state treasurer to repay the full amount by transferring $816 million to the stabilization account on June 30, 2028, and another $816 million by June 30, 2029. The bill ensures these transfers do not disrupt future budget balancing requirements. This directly affects state service funding for all Washington residents during the 2026 fiscal year.
HB 1532 allows specific cities (with populations over 120,000, located in high-population counties, and where industrial/warehousing makes up over 25% of property valuation) to add a 0.3% sales tax to offset fiscal challenges caused by current sales tax laws. This supplemental tax, collected on taxable transactions within the city, must fund community improvements like infrastructure or services to boost local vitality. Cities using this authority must hold public meetings, maintain a budget transparency webpage, and survey residents before each biennial budget. The bill replaces an expiring state funding program set to end in July 2026.
HB 1746 adjusts how Washington state provides supplemental funding to public schools based on local property tax levies. It calculates state assistance by comparing a school district's actual levy rate (per $1,000 assessed value) to a $1.50 threshold, with full funding for districts meeting or exceeding that rate. The bill extends this formula to tribal schools (starting 2022) and charter schools (starting 2025), capping per-student assistance at $2,000 (adjusted for inflation) based on prior-year levy data. This funding is separate from the state's basic education program and directly affects school districts, tribal education compact schools, and charter schools that rely on local levies.
Senate Bill 5775 expands the authority for counties and cities to impose local sales and use taxes to fund public safety and community protection programs. Counties can impose a sales and use tax up to 0.3%, either through voter approval or by ordinance until January 1, 2028. Cities can also impose a tax, with the total combined county and city rate not exceeding 0.3%. Depending on how the tax is adopted, either one-third or all of the revenue must be used for purposes such as criminal justice, fire protection, community protection, or public safety, including behavioral health and diversion programs. The bill also specifies how these tax revenues are shared between local governments.
HB 2021 authorizes Washington's Public Works Board to issue bonds repaid solely by project revenue (not state funds) to finance infrastructure projects for local governments. It directly affects cities, counties, and special districts needing to build or repair roads, bridges, water systems, sewage systems, and solid waste facilities. The bill amends state law to allow these nonrecourse bonds, creating a new financing tool to address over $4 billion in unmet infrastructure needs identified by the legislature. This provides affordable, project-specific funding without using taxpayer money or state credit.
HB 2001 requires all Washington state agencies, commissions, boards, task forces, work groups, and councils (except those mandated by the state Constitution) to automatically end every 10 years unless the legislature passes new legislation to reestablish them. This applies starting July 1, 2027, and every decade after, aiming to reduce government size and tax burdens. Constitutional bodies like the Supreme Court are exempt from this requirement. The bill’s stated purpose is to ensure state entities regularly justify their existence and align with current priorities.
SB 5797 enacts a new tax on certain financial intangible assets, such as stocks and bonds, in Washington State. The bill levies a tax of $0.34 for every $1,000 of true and fair value of these assets. It primarily affects individuals and artificial persons with over $50,000,000 in taxable financial intangible assets, while exempting retirement savings, college savings, and ownership interests in private companies. Revenues generated from this tax are dedicated to the education legacy trust account to support public schools, early learning, child care, and higher education.
HB 1614 modifies Washington's capital gains tax rules by replacing the business and occupation tax credit with a new nonrefundable capital gains tax credit, closing technical loopholes, and clarifying how credits apply to taxpayers. It requires brokers and barter exchanges to report transactions, limits credit use to the tax year of the sale (with no carryforwards), and mandates monthly transfers from the general fund to education accounts based on tax reductions. The bill directly affects taxpayers with capital gains, brokers, and state education funding streams, while ensuring no net change to state tax collections. Key provisions include standardized treatment for spouses/domestic partners and new rules for adjusting transfer amounts to education funds. The changes take effect for 2025 tax years and expire January 1, 2026.
