HB 1043 extends the state's commute trip reduction tax credit program for employers and property managers until 2035. This program allows eligible entities to claim a tax credit for providing financial incentives to employees who use alternative commuting methods like ride-sharing, public transportation, car-sharing, or non-motorized transport. The bill changes the credit calculation so that the full amount paid to or on behalf of an employee, up to $60 per employee annually, can be credited (previously 50%). It also reduces the maximum credit a single entity can claim per fiscal year from $100,000 to $50,000.
SB 5806 creates a voluntary tax disclosure program allowing unregistered taxpayers to come forward, pay overdue taxes without penalties or interest, and register permanently. It directly affects businesses or individuals who engaged in taxable activities without proper registration but have not committed fraud or evasion. To qualify, applicants must submit a registration application before department contact, disclose all past taxable activity, and attest under penalty of perjury. The program runs from July 1 to September 30, 2025, and does not apply to taxes already paid before July 1, 2025, or to unremitted sales taxes collected from buyers.
HB 1883 extends the expiration date of a tax credit for businesses participating in Washington's customized employment training program from 2026 to July 1, 2031. The credit allows businesses to reduce their state tax bill by 50% of payments made to the training program. The bill requires the college board to submit a 2028 report detailing program outcomes, including employee training numbers, wage growth, retention rates, and geographic distribution. The legislature states that future extensions may be considered if 75% of businesses complete training and repay the allowance, based on the report's findings.
SB 5815 proposes modifications to Washington's Business and Occupation (B&O) tax system. The bill would increase certain B&O tax rates for businesses engaged in activities such as extracting, manufacturing, and retail sales to 0.5 percent. It also introduces a temporary B&O tax surcharge specifically for large companies with annual revenues exceeding $250 million. Additionally, the bill clarifies B&O tax deductions for certain investments and adjusts the advanced computing surcharge cap. The stated intent is to generate revenue to support public schools, higher education, health care, and social services across the state.
HB 1060 amends Washington state tax law to exempt newspaper publishers and eligible digital content providers from certain taxes. It specifically applies to businesses primarily engaged in printing/publishing newspapers or producing monthly electronic publications with identifiable authorship (e.g., news sites). To maintain the exemption, businesses must file annual tax reports and reduce the exemption by their business expenditures during the tax period. Failure to comply results in a 0.484% tax on related income, plus retroactive interest. The law took effect July 27, 2025.
HB 1785 imposes a surcharge on Washington-based publicly traded companies with CEO pay at least 50 times the median employee wage. The surcharge is 10% for ratios of 50-149:1 and 25% for ratios of 150:1 or higher, applied to state corporate taxes starting January 1, 2026. Companies must disclose their executive pay ratio to the SEC (per Dodd-Frank Act); failure to report triggers the 25% rate. All revenue from the surcharge funds the state general fund.
HB 2075 increases the state's cannabis excise tax on high-THC products to 50% of the selling price, up from 37% for lower-THC items. It directly affects retailers selling cannabis concentrates or useable cannabis with over 35% THC to general consumers (not medical patients, who remain exempt until 2029). The key mechanism sets tiered tax rates based on THC concentration, requires the tax to be itemized separately on receipts, and directs all revenue to a dedicated cannabis account. The bill also mandates the board to review tax levels and report on sales impacts, though it does not change medical cannabis exemptions.
SB 5796 imposes a 5% excise tax on large Washington employers for payroll expenses exceeding the Social Security wage threshold (currently $168,600 per employee annually). It directly affects employers with over $7 million in annual payroll - estimated to be 17% of businesses - while exempting smaller businesses. The tax revenue funds public schools, health care, and social services by depositing funds into the state general fund. Employers must pay the tax directly (not deducted from employee wages), with the tax applying only to wages above the Social Security limit.
SB 5687 increases the portion of Washington's general sales tax revenue dedicated to performance audits from 0.16% to 0.2%. This change applies to taxes collected under RCW 82.08.020(1) on retail sales of tangible goods, digital products, and certain services. The additional funds must be deposited into the "performance audits of government account" established under RCW 43.09.475. The law takes effect January 1, 2026, and directly affects all businesses collecting retail sales tax in Washington.
HB 1960 aims to encourage renewable energy development in Washington by changing the tax structure for large-scale solar and wind energy facilities. The bill exempts personal property used for renewable energy generation and storage in qualified facilities from property taxation. In its place, it establishes a new annual excise tax on these facilities, with rates varying based on the energy type, operational date, and capacity of the generation and storage systems. This new tax directly affects operators of significant solar and wind energy projects and their associated storage systems across the state.
