Bill > SB5791

This bill modifies the state's business and occupation (B&O) tax rates, primarily increasing the standard tax rate from 1.75% to 1.8% for most businesses. The bill specifically changes how tax revenues are allocated, with 16.67% (up from 14.3%) of revenues collected under this rate to be deposited into the workforce education investment account, which supports higher education initiatives. The legislation maintains a lower 1.5% tax rate for certain businesses, including those with less than $1 million in gross income (with some affiliation restrictions), and hospitals. The bill also introduces stricter administrative provisions, allowing the state department to require businesses to identify affiliates and potentially penalize those who fail to provide complete information about their business relationships. Additionally, the bill includes provisions for aerospace product development businesses and sets an effective date of October 1, 2025. The primary goal appears to be generating additional funding for workforce and higher education programs by making a modest increase in the business tax rate.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5791&Year=2025&Initiative=false