Bill > HB1374

This bill proposes to reduce the state sales and use tax rate from 6.5% to 6% by removing the language "and five-tenths" from the existing statute. The bill specifically modifies RCW 82.08.020, which outlines the state's sales tax requirements. The tax reduction would apply to a wide range of retail sales, including tangible personal property, digital goods and services, and other items defined as retail sales under state law. The bill maintains the existing additional tax rates for car rentals (5.9%) and motor vehicle sales (0.3%), which are deposited into the multimodal transportation account. Other existing provisions of the sales tax law remain unchanged, such as the 0.16% dedication to performance audits of government. The bill is scheduled to take effect on October 1, 2025, giving state agencies and businesses time to prepare for the tax rate change. The reduction in sales tax rate could potentially provide some minor financial relief to consumers and businesses by lowering the overall cost of taxable purchases in the state.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1374&Year=2025&Initiative=false