Bill > HB2045

This bill aims to invest in Washington families by restructuring business and occupation taxes on high-grossing businesses and financial institutions. Beginning January 1, 2026, the bill imposes a new 1% surcharge on Washington taxable income exceeding $250 million per calendar year, with several specific exemptions for manufacturers, farmers, and certain types of income. The bill also modifies the existing tax on specified financial institutions, increasing their additional tax rate from 1.2% to 1.9% starting July 1, 2025. A specified financial institution is defined as a member of a consolidated financial institution group that reported annual net income of at least $1 billion in the previous calendar year. The legislative intent behind this tax restructuring is to generate additional revenue to fund critical state services, including K-12 education, public safety, health care, and basic human needs assistance. The bill declares an emergency provision and is designed to provide immediate support for state government and public institutions by levying incremental taxes on the state's highest-earning businesses and large financial institutions.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2045&Year=2025&Initiative=false