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Bill > SB5815
WA SB5815
WA SB5815Modifying business and occupation tax surcharges, rates, and the advanced computing surcharge cap, clarifying the business and occupation tax deduction for certain investments, and creating a temporary business and occupation tax surcharge on large companies.
summary
Introduced
04/16/2025
04/16/2025
In Committee
04/16/2025
04/16/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
AN ACT Relating to funding public schools, including higher 2 education, health care, social services, and other programs and 3 services to benefit Washingtonians by modifying business and 4 occupation tax surcharges, rates, and the advanced computing 5 surcharge cap, clarifying the business and occupation tax deduction 6 for certain investments, and creating a temporary business and 7 occupation tax surcharge on large companies with annual revenues with 8 more than $250,000,000; amending RCW 82.04.230, 82.04.240, 82.04.250, 9 82.04.257, 82.04.263, 82.04.270, 82.04.280, 82.04.285, 82.04.290, 10 82.04.2905, 82.04.2906, 82.04.260, 82.04.29004, and 82.04.4281; 11 reenacting and amending RCW 82.04.260 and 82.04.299; adding a new 12 section to chapter 82.04 RCW; creating new sections; providing 13 effective dates; and providing expiration dates. 14
AI Summary
This bill proposes significant changes to Washington state's business and occupation (B&O) tax structure, with several key provisions aimed at increasing state revenue and supporting public services. It introduces new tax rates and surcharges for various business activities, modifies existing tax deductions, and creates a temporary surcharge on large corporations. Specifically, the bill increases the B&O tax rate from around 0.484% to 0.5% for many business categories, implements a new 0.5% surcharge on companies with over $250 million in Washington taxable income beginning in 2026, and increases the financial institutions tax rate from 1.2% to 1.5%. The bill also clarifies the B&O tax deduction for investment income, defining when investment income can be deducted based on its proportion to a business's total income. The revenue generated from these tax changes is intended to support public schools, higher education, healthcare, social services, and other critical state programs. The changes are phased in over several years, with most new rates taking effect in 2026 or 2027, and the bill includes provisions to ensure that certain industries like manufacturing and agriculture are not disproportionately impacted by the new tax structures.
Committee Categories
Budget and Finance
Sponsors (6)
Rebecca Saldaña (D)*,
Noel Frame (D),
T'wina Nobles (D),
Jamie Pedersen (D),
June Robinson (D),
Javier Valdez (D),
Last Action
By resolution, reintroduced and retained in present status. (on 01/12/2026)
bill text
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://app.leg.wa.gov/billsummary?BillNumber=5815&Year=2025&Initiative=false |
| Fiscal Note - 5815 SB (Final) | https://fnspublic.ofm.wa.gov/FNSPublicSearch/GetPDF?packageID=74997 |
| Senate Bill Report (Orig.) | https://lawfilesext.leg.wa.gov/biennium/2025-26/Pdf/Bill%20Reports/Senate/5815%20SBA%20WM%2025.pdf |
| BillText | https://lawfilesext.leg.wa.gov/biennium/2025-26/Pdf/Bills/Senate%20Bills/5815.pdf |
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