WR is closely monitoring the bills that have advanced through the legislative process. Each week, we’ll spotlight our weekly “hot list” key legislation that could have the most significant impact on WR members.

Public Safety, Retail Theft, Organized Retail Crime (HB 2015)
HB 2015 Improving public safety funding by providing resources to local governments and state and local criminal justice agencies. This bill focuses on local government funding for public safety. WR continues to closely monitor this bill and engage when necessary to ensure our members’ interests are represented and addressed throughout the legislative process.
Position: WR supports this bill.
Status: March 27, 2025: Scheduled for executive session in the Senate Committee on Law & Justice at 10:30 AM

House and Senate Tax Packages:

Financial Intangibles Tax – Wealth Tax (SB 5797)/ (HB 2046)
- SB 5797
  - 1% tax on assessed value of certain financial assets held by individuals with more than $50 million of these assets.
  - Estimated to impact 4,300 taxpayers.
  - Applies to both financial intangible assets and nonfinancial intangible assets.
  - “Financial intangible assets” include cash, cash equivalents, and various financial investments like bonds, stocks, mutual funds, options, futures, commodities, and ownership units in business entities.
  - “Nonfinancial intangible assets” cover intangible property beyond financial assets, such as trademarks, patents, copyrights, trade secrets, licenses, customer lists, goodwill, reputation, and private service or sports contracts.
  - $4 billion per year starting in fiscal year 2027
- Position: WR opposes this bill.
- Status: March 21, 2025: First reading, referred to Ways & Means.

- HB 2046
  - 0.8% tax on assessed value of certain financial assets held by individuals with more than $50 million of these assets.
  - Estimated to impact 4,300 taxpayers.
  - “Financial intangible assets” include cash, cash equivalents, and various financial investments like bonds, stocks, mutual funds, options, futures, commodities, and ownership units in business entities.
  - $2 billion per year starting in fiscal year 2027
- Position: WR opposes this bill.
- Status: March 21, 2025: First reading, referred to Ways & Means.

Removing the Property Tax Levy Lid – Property Tax (SB 5798) / (HB 2049)
- SB 5798
  - Removes the 1% cap on the property tax growth limit for the state’s common schools levy and for cities and counties, as well as special purpose districts.
  - The updated definition to “limit factor” now allows taxing districts to use the greater of 100% plus population change and inflation or 101% for their growth rate.
  - Changes the definition of “Inflation” to the annual percentage increase in the CPI for all urban consumers in the western region, based on the most recent 12-month data from the U.S. BLS, as of July 25th of the year before taxes are due.
  - Adds definition for “population change”: The annual percentage increase in a taxing district’s population based on the latest two years of official estimates from the OFM as of April 1st of the year before taxes are due. For counties, this includes both incorporated and unincorporated areas, except for county road funds.
- Position: WR opposes this bill.
- Status: March 21, 2025: First reading, referred to Ways & Means.

- HB 2049
  - Allows for state and local property tax increases based on inflation and population changes, not to exceed 3%.
  - Changes the definition of “Inflation” to the annual percentage increase in the CPI for all urban consumers in the western region, based on the most recent 12-month data from the U.S. BLS, as of July 25th of the year before taxes are due.
  - Adds definition for “population change”: The annual percentage increase in a taxing district’s population based on the latest two years of official estimates from the Office of Financial Management as of April 1st of the year before taxes are due. For counties, this includes both incorporated and unincorporated areas, except for county road funds, which only consider unincorporated areas. If a taxing district spans multiple areas, its population change is determined by the city, county, or county with the highest taxable assessed.
- Position: WR opposes this bill.
- Status: March 24, 2025: First reading, referred to Finance.

B&O Surcharge on Large Corporations and Financial Institutions – B&O Tax (HB 2045)

Beginning January 1, 2026, 1% B&O surcharge on businesses with taxable income over $250 million.
- Exemptions: manufactures, semiconductor manufacturing, commercial airplane activities, alternative jet fuel manufacturing, aluminum manufacturing, and manufacturing solar energy systems.
- Estimated to impact 400 taxpayers.
Beginning July 1, 2025, increases B&O surcharge from 1.2% to 1.9% for financial institutions outlined in RCW 82.04.29004.
- Estimated to impact 200 taxpayers.
- Estimated $600 million in fiscal year 2026 and nearly $2 billion in fiscal year 2027.

Position:WR opposes this bill
Status: March 24, 2025: First reading, referred to Finance.

Cutting the Sales Tax (SB 5795)

Reduces the sales tax from 6.5% to 6%
Decrease revenue approx. $1.3 billion per year

Position: WR opposes this bill.
Status: March 21, 2025: First reading, referred to Ways & Means.

Repeating Tax Preferences (SB 5794)

Repeals various tax preferences, deductions, and exemptions across multiple industries, including transportation, agriculture, international commerce, healthcare, energy, and nonprofits, while updating job creation tax credits and clarifying public policy objectives for certain tax benefits. (see high-level summary attached to this email).
These preferences were identified by JLARC as failing to meet their public policy objectives, having unclear outcomes, or being legally obsolete.
According to the Senate Democrats, this would generate just over $1 billion over the full four-year budget cycle.

Position: WR opposes this bill.
Status: March 21, 2025: First reading, referred to Ways & Means.

Proposed Transportation Revenue Changes (HB 2043) / (SB 5801)

HB 2043
- Fuel Tax Increase & Inflation Indexing
  - 9-cent increase in fuel tax (gasoline & diesel) from 49.4 cents.
  - Inflation indexing begins FY 2027.
  - 6% of the increase allocated to cities and counties.
- Special Fuel (Diesel) Tax Increase
  - Additional 3-cent increase above gasoline in FY 2026.
  - Another 3-cent increase in FY 2028.
  - Inflation indexing starts FY 2029.
- Registration & Weight Fees
  - Truck weight fees: $30 per ton up to 64,000 lbs, indexed to inflation from FY 2027.
  - Passenger vehicle weight fees increase, phased in from FY 2026 – FY 2028:
    - 4,001-6,000 lbs: $55 → $75
    - 6,001-8,000 lbs: $75 → $90
    - 8,001+ lbs: $82 → $110
  - Inflation indexing begins FY 2029.
- Other Vehicle Fees
  - Title & registration fees increase:
    - Title service fee: $15 → $18
    - Registration service fee: $8 → $11
  - Filing fees increased as well.
  - Highway Use Fee:
    - Based on fuel economy, applies to vehicles >25 MPG (excludes EVs/PHEVs).
  - BEV fee remains $225, PHEV fee is $150.
  - Inflation indexing starts FY 2027.
- Other Taxes & Fees
  - Tire replacement tax: Additional $4 per tire.
  - Motor vehicle sales tax increase:
    - From 0.3% to 1% starting January 1, 2026.
  - Graduated tax:
    - 1% on vehicle value above $50,000.
    - Additional 1% on value above $100,000.
    - Applies to non-commercial vehicles under 10,000 lbs, including motorhomes.
  - Estimated 6-Year Revenue Impact
  - $1.83 billion from fuel tax and weight fees.
  - $228 million from other vehicle-related fees and taxes.
  - Effective dates range from July 1, 2025, to January 1, 2026.
Position: WR opposes this bill.
Status: March 25, 2025: Scheduled for public hearing at 4:00 PM in the House Committee on Transportation.

SB 5801
- Fuel & Vehicle Fees
  - Fuel Tax Increase: +6 cents in FY 2026; indexed to 2% inflation starting FY 2027.
  - Electric Vehicle Fees: Increased from $225 to $275 for BEVs; hybrid fees rise from $75 to $100 in FY 2026; fees applied to initial registration; indexed to inflation from FY 2027.
  - Title & Registration Fees: Title fee increased from $15 to $18; registration service fee from $8 to $11.
- New & Increased Taxes
  - Luxury Vehicle Tax: 10% tax on vehicle value exceeding $100,000.
  - E-Bike Surcharge: 10% surcharge on e-bike purchases.
  - Tire Disposal Fee: Increased by $4 per tire.
  - Rental Car & Peer-to-Peer Car Sharing Tax: Raised from 5.9% to 11.9% in 2026, then reduced to 9.9% in 2027.
- Traffic & Transit Fees
  - Work Zone Speed Cameras: Pilot program through FY 2030; $125 fine for first offense starting in 2026.
  - Traffic Infraction Fee: $10 surcharge on all traffic infractions starting in 2026.
  - Ferry Fare Increase: Additional 1.5% annual hike beyond baseline 2.5% increase.
  - Large Event Fee: $1 per attendee for events with 20,000+ attendees at venues like T-Mobile Park and the Gorge Amphitheatre.
- Infrastructure & Transit Investments
  - New Transit Grant Programs: Funding for road safety, bicycle infrastructure, and senior transportation.
  - Highway & Bridge Tolling: Extends Tacoma Narrows Bridge tolls beyond debt repayment; expands SR 520 tolling.
  - Fish Barrier Removal: Expedited permitting process for fish habitat projects.
  - Zero Emission Vehicle Programs: Funding extended indefinitely for EV charging infrastructure and incentives.
- Other Provisions
  - License Plate Shortages: Establishes temporary plate extensions during shortages.
  - Biodiesel for Ferries: Requires Washington State Ferries to transition to higher biodiesel blends by 2030.
  - Diversity Reporting: Adds diversity updates to the Board of Pilotage annual report.
Estimated Six-Year Revenue Impact: $3.04 billion
Position: WR opposes this bill.
Status: March 27, 2025: Scheduled for executive session at 4:00 PM in the Senate Committee on Transportation.