The advanced computing surcharge is imposed on “select advanced computing businesses” to help fund the workforce education investment account (WEIA). The surcharge is on top of other business and occupation (B&O) taxes. As part of ESHB 2081 (adopted in 2025), the surcharge rate increased from 1.22% to 7.5%, effective Jan. 1, 2026. At the same time, the annual cap on the combined surcharge paid by members of an affiliated group increased from $9 million to $75 million.

As I wrote in May, just 50 taxpayers paid the surcharge in calendar year 2024. (The May post also provides more background on the surcharge and WEIA.) From fiscal year 2021 through 2025, the surcharge accounted for less than 20% of WEIA revenues. (Other revenues come from a portion of the B&O tax on service and other activities.) In May, I noted that, based on the fiscal note for ESHB 2081, the surcharge could account for more than 40% of WEIA revenues going forward.

According to the Economic and Revenue Forecast Council, as part of the September 2026 revenue forecast, advanced computing surcharge revenues are now estimated to total $534.2 million in FY 2027 (the first full year of the increased tax rate and cap). Under the September forecast, advanced computing surcharge revenues are expected to account for 53.4%–54.3% of total WEIA revenues each year going forward.

The estimates of advanced computing surcharge revenues are significantly higher in the September forecast than in the June 2026 forecast or the fiscal note for ESHB 2081. Indeed, for the 2026–2031 forecast period, the forecast of advanced computing surcharge revenues increased by $302 million from the June forecast to the September forecast. For the same period, the forecast of other B&O tax revenues to the WEIA decreased by $491 million. (Similarly, the forecast of B&O tax revenues to the general fund–state decreased by $359 million.)