An income tax is not the only tax increase being considered by the Legislature this year, even after enacting historically large tax increases last year. If enacted, the new proposals would add to an already high tax burden in Washington.

This post catalogs the tax increases that have been introduced so far this year (it may not be exhaustive). The list also includes some tax increases that were initially proposed last year if they have seen movement this year as well. (For example, several wealth tax bills were introduced last year and are technically still alive, but they have not been brought up this year, so they are not on the list: SB 5797, HB 1319, and HB 2046.) Additionally, the list does not include fees, unless they would function more like a tax.

It’s important to note that many bills are introduced but never adopted. Generally, the proposals can be grouped into six categories: Income and gross receipts; health care; information, social media, and data; sin; housing, energy, and environment; and local funding and local tax authorizations.

Income and gross receipts

• SB 6346 and HB 2724 would impose an income tax of 9.9% on income over $1 million. A fiscal note is not available.
• HB 2100 and SB 6093 would impose a payroll expense tax of 5% on wages over $125,000 for certain companies. This would increase revenues by $11.842 billion in 2027–29.
• HB 2089 would apply the business and occupation (B&O) tax to interest on loans even if the financial institution is located in fewer than 10 states. This would increase revenues by $25.9 million in 2025–27 and $132.8 million in 2027–29.
• HB 2292 and SB 6229 would apply the state capital gains tax to qualified small business stock. This would increase revenues by $1.2 million in 2025–27 and $2.2 million in 2027–29.
• HB 2098 would remove the cap on the advanced computing B&O tax surcharge. According to the fiscal note, “This bill has a positive revenue impact; however, that impact cannot be disclosed because the legislation impacts fewer than three taxpayers.”
• HB 2713 would impose a 1% B&O tax surcharge on income from the operation of private detention facilities. A fiscal note is not available.

Health care

• SB 6173 would impose an Apple Health employer assessment on employers with employees who are Medicaid enrollees. It would increase revenues by $959.1 million in 2027–29.
• HB 2300 would require employers of Medicaid enrollees to reimburse the state for the cost of purchasing coverage. A fiscal note is not available.
• HB 2626 would increase the insurance premium tax by 1% for certain insurers, remove exemptions for dental, and add a new 1% tax. This would increase revenues by $114.4 million in 2025–27 and $235.6 million in 2027–29.
• HB 2707 and SB 6228 would increase the B&O tax rate on warehousing and reselling prescription drugs. This would increase revenues by $26.5 million in 2025–27 and $154.6 million in 2027–29. (This was included in the governor’s supplemental budget proposal.)
• HB 2487 and SB 5949 would limit the B&O tax exemption related to insurance premiums taxes. This would increase revenues by $55.6 million in 2025–27 and $17.2 million in 2027–29. (This was included in the governor’s supplemental budget proposal.)
• HB 2657 and SB 6182 would add an insurance premium tax annual coverage assessment of $0.82 (then dropping to $0.165) per coverage month. This would increase revenues by $10.0 million in 2025–27 and $4.3 million in 2027–29.
• SB 6159 would add an annual coverage assessment of $0.75 per month on insurance premium taxpayers. A fiscal note is not available.
• HB 2720 would impose a covered lives assessment of $0.58 per member per month on health insurers. A fiscal note is not available.
• HB 2073 and SB 5808 would require nonprofit health carriers to pay 3% of any excessive surplus. The fiscal impact is indeterminate.

Information, social media, and data

• HB 2708 and SB 6231 would apply the sales tax to data center refurbishments. This would increase revenues by $63.1 million in 2025–27 and $143.9 million in 2027–29. (This was included in the governor’s supplemental budget proposal.)
• SB 5400 and HB 1836 would impose a 1.22% B&O tax surcharge on certain social media platforms, up to $6 million annually. This would increase revenues by $24.2 million in 2025–27 and $50.0 million in 2027–29.
• HB 2038 and SB 5799 would impose an additional B&O tax of 0.4% on persons engaged in the operation of a social media platform. This would increase revenues by $9.7 million in 2025–27 and $16.1 million in 2027–29.
• HB 2579 would impose a public media broadcaster and digital equity tax of $0.2 per month on the use of all radio access lines, all VOIP lines, and all switched access lines. This would increase revenues by $10.2 million in 2025–27 and $50.3 million in 2027–29.
• HB 2515 and SB 6171 would impose a facility fee of $0.005 per kilowatt hour on emerging large energy use facilities (to be used for energy assistance and higher education). This would increase revenues by $46.4 million in 2027–29.

Sin

• HB 2291 would impose a new 11% tax on the sales price of kratom products. This would increase revenues by $714,000 in 2025–27 and $4.0 million in 2027–29.
• SB 6196 would impose a new 95% tax on the sale, use, consumption, handling, possession, or distribution of all kratom products. This would increase revenues by $2.8 million in 2025–27 and $12.9 million in 2027–29.
• HB 2382 would increase the cigarette tax and the tobacco products tax and change the vapor products tax. This would increase revenues by $124.1 million in 2027–29.
• SB 6129 would make various increases to the cigarette tax, vapor products tax, and tobacco products tax. This increase revenues by $117.0 million in 2027–29.
• SB 6328 would change how the cannabis excise tax is levied. A fiscal note is not available.

Housing, energy, and environment

• SB 5109 and HB 2193 would increase the document recording surcharge for the mortgage lending fraud prosecution account from $1 to $5 and remove the sunset. This would increase revenues by $1.9 million in 2025–27 and $3.7 million in 2027–29.
• HB 2215 would lower the Climate Commitment Act compliance threshold. This would increase revenues by $45,000 in 2025–27 and $178,000 in 2027–29. (The revenue impacts do not include amounts that would be spent to buy allowances at auction.)
• HB 2367 and SB 6172 would apply the sales tax to coal purchased for use in electric generation. According to the fiscal note, “The department cannot disclose the impacts of legislation affecting fewer than three taxpayers.”
• HB 2519 would require utilities to provide discounted rates to schools. A fiscal note is not available.
• HB 2723 would increase sales tax and public utilities tax for certain natural gas businesses. A fiscal note is not available.
• HB 1607 and SB 5502 would create a bottle deposit return program, in which consumers would pay an extra $0.1 per covered beverage container (the charge would be refunded if the consumer returns the empty bottle). A complete fiscal note is not available.

Local funding and local tax authorizations

• HB 2018 would impose an additional 0.5% (growing to 2.5%) state tax on solid waste collection services (revenues would be directed to local governments). This would increase revenues by $4.0 million in 2025–27 and $44.0 million in 2027–29.
• HB 2502 would limit certain sales and use tax exemptions to the state portion, so that the tax would have to be paid to local governments. A fiscal note is not available.
• HB 2442 and SB 6294 would allow cities to impose an additional 0.5% local real estate excise tax for affordable housing, allow counties to impose local public utility taxes on utility services, allow cities and counties to impose a 0.01% sales tax for children and another 0.1% for housing, and allow counties to levy property tax levies for mental health. This would increase revenues by $37.5 million in 2025–27 and $161.0 million in 2027–29.
• HB 2528 and SB 6211 would allow cities and counties that voluntarily plan under the Growth Management Act to impose a real estate excise tax without a vote of the people. This would increase revenues by $1.0 million in 2025–27 and $10.7 million in 2027–29.
• HB 2097 would allow counties to impose a B&O tax. A fiscal note is not available.
• HB 2559 would allow cities and counties to impose a 4% special excise tax on sales of short-term rental lodging. This would increase revenues by $1.9 million in 2025–27 and $49.6 million in 2027–29.
• HB 2583 would allow more cities to impose the local lodging excise tax. A fiscal note is not available.
• HB 2278 would allow local tourism promotion authorities to charge $2 per room per night and remove a sunset. This would increase revenues by $3.8 million in 2027–29.
• HB 2258 would allow cities and counties to impose a household excise tax for animal control and shelter systems. A fiscal note is not available.
• HB 2116 would increase maximum local school enrichment levy authority. This would increase revenues by $9.1 million in 2027–29.
• HB 2326 would authorize voters to allow EMS levies by fire districts that are partly covered by other taxing districts. The fiscal impact is indeterminate.
• HB 2313 would allow cities to establish local tax increment financing areas to fund publicly owned grocery stores. The fiscal impact is indeterminate.
• HB 2194 would allow counties and cities to impose the local 0.1% cultural access sales tax concurrently. The fiscal impact is indeterminate.
• HB 2726 would allow cities, counties, metropolitan park districts, and park and recreation districts to impose a 0.2% sales and use tax (if approved by voters) for parks. A fiscal note is not available.
• SB 5650 would allow counties to impose 2% excise tax on cannabis if approved by voters. The fiscal impact is indeterminate.