Bill > HB1277

This bill creates a sales and use tax exemption for medical equipment and medical supplies purchased by a specific type of critical access hospital, defined as a public hospital located on an island within 25 miles of a military installation with a critical access designation from Medicare and Medicaid services. The exemption begins on January 1, 2026, and will expire on January 1, 2036. The tax exemption applies only to medical equipment and supplies used directly for patient care, and explicitly does not cover construction materials, office equipment, administrative supplies, or vehicles not used for patient transportation. Medical equipment is defined as instruments and machines used for preventing, diagnosing, or treating human illness, while medical supplies are described as consumable items used in patient treatment, such as gloves, gauze, syringes, needles, dressings, and pharmaceuticals. The bill requires the state department to publish an electronic list of qualifying medical equipment and supplies and includes a performance statement indicating the legislative intent is to reduce tax burdens on this specific type of critical access hospital. If a subsequent review finds the fiscal cost of the tax preference has not significantly exceeded initial estimates, the legislature intends to consider extending the exemption beyond its current expiration date.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1277&Year=2025&Initiative=false