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.
House to Vote on Largest B&O Tax Increase in State History (HB 2081 & SB 5815)
The House is preparing to vote on the largest business and occupation tax increase in the state’s history. The bill increases rates across all industry sectors, imposes an extra surcharge on financial institutions and advanced computing, and is expected to generate $6B over four years. This tax will devastate retailers with increases that could exceed profit margins. The retail B&O tax rate is historically set at the lowest rate to account for narrow profit margins, high overhead, and the added burden of collecting sales tax on behalf of the state. Raising the rate from 0.471% to 0.5%—a 6.1% increase—will increase costs for essential goods like school supplies and clothing. The bill also contains a surcharge of 5% on advanced computing software, capped at $9 million annually per company. Although the Senate held a hearing on the companion bill, SB 5815, the House version, HB 2081, appears to be the legislation that will move.
Position: WR opposes this bill.
Status: Scheduled for a hearing in Senate Ways & Means.
Job Posting “Right to Cure” Passes House After Amendment (SB 5408)
SB 5408, the “Right to Cure” legislation, passed the House 94-1 after an amendment was agreed to with advocates and the business community. The final bill protects employers from job postings published without employer consent and requires that employers disclose a fixed wage amount if offering a set wage. The time to correct a posting violation is reduced from the initial Senate-passed version of 14 calendar days to 5 business days. Statutory damages range from $100 to $5,000 per violation. The bill goes back to the Senate for a concurrence vote.
Position: WR supports this bill.
Status: Pending concurrence vote in the Senate.
Massive Increase in Liquor Licenses for Retailers Being Considered (SB 5786 & HB 2035)
SB 5786 proposes fee increases for licenses related to alcohol sales. WR is concerned that lawmakers lack understanding about beer, wine, and spirits licenses for grocery and convenience stores, and are solely focused on raising revenue. The bill doubles the number of licenses and disproportionately impacts small retailers under 10,000 square feet. Key changes include:
- Grocery Beer/Wine License: Increases from $150 to $975 under SB 5786 compared to $225 under HB 2035.
- Spirits Retailer License: Currently $166 increases to $249 but includes a 17% license issuance fee averaging $60K per store.
- Combo License (S/B/W): The price increases from $316 to $474, along with the 17% issuance fee.
Position: SB 5786; Oppose / HB 2035; Neutral
Status: While SB 5786 narrowly passed the Senate by a vote of 25-24, it is now under consideration by the House Appropriations Committee, where they are expected to align SB 5786 with HB 2035.
Improving public safety funding by providing resources to local governments and state and local criminal justice agencies, and authorizing a local option tax (HB 2015)
House Bill 2015 proposes a comprehensive public safety strategy, allowing local governments to raise sales taxes to fund law enforcement, courts, and treatment programs. It includes grants to hire more officers, prosecutors, defense attorneys, and diversion/treatment specialists, addressing, in particular, Washington’s low police staffing. Supported by the Washington Retail Association, the bill is seen as crucial for ensuring safe workplaces and communities. The bill passed the Senate with bi-partisan support and now returns to the House for hopeful concurrence before heading to the Governor who has indicated his intent to sign it into law.
Position: WR strongly supports this bill.
Status: Passed the Senate, back to House for concurrence.
