The Washington Legislature recently held a public hearing on HB 1517, which proposes a $2 tax on smart wireless devices over $250 to fund digital equity programs. While the WR and our members support efforts to close the digital divide, this bill takes the wrong approach.
Key Concerns with HB 1517
- Overly Broad Scope – The bill defines “smart wireless devices” too broadly, capturing a wide range of products beyond what is necessary.
- Unfair Burden on Retailers & Consumers – The tax disproportionately targets retailers and their customers, creating an uneven playing field.
- High Compliance Costs – Retailers would face significant administrative challenges in tracking, SKUing, and taxing qualifying devices.
WR, alongside a coalition of industry groups, testified in strong opposition, arguing that if digital equity is a legislative priority, it should be funded through the state budget, not an arbitrary tax that increases costs for businesses and consumers.
WR will continue to monitor the bill’s progress.
