Mar 27, 2025  -  Uncategorized | Projects | Business

SOUTH SOUND CHAMBER OF COMMERCE LEGISLATIVE COALITION WEEKLY LEGISLATIVE UPDATE --  March 21, 2025

 

We are beyond the halfway point of the 2025 Legislative Session and getting ready for the proverbial other shoe to fall as the tax and budget proposals are unveiled over the next few days.   The most recent revenue forecast indicates that state tax collections are decreasing by $845 million which makes the nearly $15 billion shortfall in the budget even more pronounced. 

 

On Thursday we saw the first revenue proposal from the Senate Democrats.  It includes increasing the property tax cap, a 5% payroll tax on payroll expenses above $176,100 per year for companies with $7 million or more in payroll expenses, a wealth tax on individuals with wealth above $50 million, a state sales tax REDUCTION from 6.5% to 6%, and elimination of 20 tax exemptions.  The expectation is that this will raise about ½ of the $12 billion needed to balance the budget.  Here are some stories that explain more:

 

https://washingtonstatestandard.com/2025/03/20/washington-senate-democrats-unveil-their-tax-package/

 

https://senatedemocrats.wa.gov/blog/2025/03/20/senate-democrats-release-2025-revenue-proposal/

 

 

Today the House released its tax proposal that includes the following:

 

Financial Intangibles Tax (Wealth Tax)

• HB 2046 – Rep. Berg & Rep. Street
• 0.8% tax on assessed value of certain financial assets held by individuals with more than $50 million of these assets.
• Estimated to impact 4,300 taxpayers.
• "Financial intangible assets" include cash, cash equivalents, and various financial investments like bonds, stocks, mutual funds, options, futures, commodities, and ownership units in business entities.
• According to House Democrats, this will generate approximately  $2 billion per year starting in fiscal year 2027

 

Property Tax Levy Lid Lift (1% to 3%)

• HB 2049 – Rep. Bergquist & Rep. Pollet
• Allows for state and local property tax increases based on inflation and population changes, not to exceed 3%
• Changes the definition of “Inflation” to the annual percentage increase in the CPI for all urban consumers in the western region, based on the most recent 12-month data from the U.S. Bureau of Labor Statistics, as of July 25th of the year before taxes are due.
• Adds definition for “population change”: The annual percentage increase in a taxing district's population based on the latest two years of official estimates from the Office of Financial Management as of April 1st of the year before taxes are due. For counties, this includes both incorporated and unincorporated areas, except for county road funds, which only consider unincorporated areas. If a taxing district spans multiple areas, its population change is determined by the city, county, or county with the highest taxable assessed value. Population change is rounded to the nearest 0.1%.
• DOR estimates the change will increase funding for state investment in K-12 schools by $50 million in fiscal year 2026 and $150 million in fiscal year 2027.

 

B&O Surcharge on Large Corporations and Financial Institutions

• HB 2045 – Rep. Fitzgibbon & Rep. Parshley
• Beginning January 1, 2026, 1% B&O surcharge on businesses with taxable income over $250 million.
o Exemptions: manufactures, semiconductor manufacturing, commercial airplane activities, alternative jet fuel manufacturing, aluminum manufacturing, and manufacturing solar energy systems.
o Estimated to impact 400 taxpayers.
• Beginning July 1, 2025, increases B&O surcharge from 1.2% to 1.9% for financial institutions outlined in RCW 82.04.29004.
o Estimated to impact 200 taxpayers.
• According to House Democrats, this will generate nearly $600 million in fiscal year 2026 and nearly $2 billion in fiscal year 2027

 

 

 

Operating, Transportation, and Capital budgets will be released on Monday, March 24th.

 

Upcoming Hearings

 

To sign in and register your position on the bills up for hearing, , just click on the bill number 

and find the tab to submit comments or testify/sign in for the hearing. You can then click on “I would like my position noted for the record” and use the information below to guide what position you choose.

 

 

Finance (House) - HHR A and Virtual JLOB - 3/21 @ 1:30pm

• ESB 5529 - Public Hearing - Amending the county population threshold for counties that may exempt from taxation the value of accessory dwelling units to incentivize rental to low-income households. (Remote Testimony Available). (Support/High)

 

 

Labor & Commerce (Senate) - SHR 1 and Virtual J.A. Cherberg - 3/24 @ 10:30am

• SHB 1308 - Public Hearing - Concerning access to personnel records. (Remote Testimony Available). (Oppose/High)

• E2SHB 1213 - Public Hearing - Expanding protections for workers in the state paid family and medical leave program. (Remote Testimony Available). (Oppose/High)CALL TO ACTION!  NEED A LOT OF PEOPLE TO SIGN IN OPPOSED!!!

• EHB 1747 - Public Hearing - Expanding protections for applicants and employees under the Washington fair chance act. (Remote Testimony Available). (Medium)

Ways & Means (Senate) - SHR 4 and Virtual JACB - 3/24 @ 4:00pm

• HB 1858 - Public Hearing - Eliminating the exemption for assignments or substitutions of previously recorded deeds of trust from the document recording fee and the covenant homeownership program assessment. (Remote Testimony Available). (High)

 

Finance (House) - HHR A and Virtual JLOB - 3/25 @ 8:00am

• HJR 4204 - Public Hearing - Amending the Constitution to allow for a property tax exemption for a principal place of residence. (Remote Testimony Available). (Oppose/High)

 

Law & Justice (Senate) - SHR 4 and Virtual JACB - 3/25 @ 8:00am

• ESHB 2015 - Public Hearing - Improving public safety funding by providing resources to local governments and state and local criminal justice agencies, and authorizing a local option tax. (Remote Testimony Available). (Support/High)SIGN OR TESTIFY IN SUPPORT!

 

Labor & Commerce (Senate) - SHR 1 and Virtual J.A. Cherberg - 3/25 @ 10:30am

• ESHB 1332 - Public Hearing - Concerning transportation network companies. (Remote Testimony Available). (Medium)

 

Labor & Workplace Standards (House) - HHR D and Virtual JLOB - 3/25 @ 10:30am

• SSB 5408 - Public Hearing - Allowing for corrections to wage and salary disclosures. (Remote Testimony Available). (Support/Medium)CALL TO ACTION – NEED LOTS OF SIGN INS TO SUPPORT!

• ESSB 5525 - Public Hearing - Concerning employment loss due to businesses closing or mass layoffs. (Remote Testimony Available). (Medium)

 

Environment, Energy & Technology (Senate) - SHR 1 and Virtual J.A. Cherberg - 3/25 @ 1:30pm

• 2SHB 1503 - Public Hearing - Furthering digital equity and opportunity in Washington state. (Remote Testimony Available). (High)

 

Appropriations (House) - HHR A and Virtual JLOB - 3/25 @ 4:00pm

• HB 1198 - Public Hearing - Making 2025-2027 fiscal biennium operating appropriations. (High)

 

Transportation (House) - HHR B and Virtual JLOB - 3/25 @ 4:00pm

• HB 1227 - Public Hearing - Making transportation appropriations for the 2025-2027 fiscal biennium. (Hearing is on the Proposed Substitute.) (High)

• HB 2043 - Public Hearing - Concerning transportation resources. (Hearing is on the Proposed Substitute.) (Concerns/High)

 

Transportation (Senate) - SHR 1 and Virtual J.A. Cherberg - 3/25 @ 4:00pm

• SB 5161 - Public Hearing - Making transportation appropriations for the 2025-2027 fiscal biennium. (Hearing is on the Proposed Substitute.) (Remote Testimony Available). (High)

 

Ways & Means (Senate) - SHR 4 and Virtual JACB - 3/25 @ 4:00pm

• SB 5167 - Public Hearing - Making 2025-2027 fiscal biennium operating appropriations. (Hearing is on the Proposed Substitute.) (High)

 

Housing (House) - HHR C and Virtual JLOB - 3/26 @ 4:00pm

• SSB 5587 - Exec Session - Concerning affordable housing development in counties not closing the gap between estimated existing housing units within the county and existing housing needs. (Medium)

 

 

 

Budget and Taxes

 

Bill #

Abbrev. Title

Short Description

Status

Sponsor

Position

Priority

County REET admin. fees

Concerning county fees for administration of the real estate excise tax.

H Rules R

Wylie

Oppose

High

HB 1126 (SB 5315)

Local tax rate changes

Standardizing notification provisions relating to local tax rate changes and shared taxes administered by the department.

S Loc Gov

Walen

Support

Medium

HB 1198 (SB 5167)

Operating budget

Making 2025-2027 fiscal biennium operating appropriations.

H Approps

Ormsby

 

High

Wealth tax

Enacting a wealth tax on the ownership of stocks, bonds, and other financial intangible property.

H Finance

Street

Oppose

High

Property tax revenue growth

Modifying the annual regular property tax revenue growth limit.

H Finance

Pollet

 

High

Firearms tax

Imposing a new tax on firearms, firearm parts, and ammunition.

H Finance

Thai

 

High

Digital equity

Furthering digital equity and opportunity in Washington state.

S Environment, En

Gregerson

 

High

Local real estate excise tax

Increasing the flexibility of existing funding sources to fund public safety and other facilities by modifying the local real estate excise tax.

S Ways & Means

Paul

 

High

Children services/local tax

Creating a local sales and use tax to fund services for children and families that enhance well-being, promote mental health, and provide early interventions.

H Rules R

Tharinger

 

High

Advanced computing surcharge

Increasing the investments in our workforce by amending the advanced computing surcharge.

H Finance

Reed

 

High

Deed of trust assignment/fee

Eliminating the exemption for assignments or substitutions of previously recorded deeds of trust from the document recording fee and the covenant homeownership program assessment.

S Ways & Means

Scott

 

High

Affordable housing REET

Allowing counties or cities to impose a real estate excise tax for the purpose of developing affordable housing, subject to the will of the voters.

H Rules R

Ramel

 

High

HB 1907 (SB 5711)

Self-service storage/tax

Defining the rental or lease of individual storage space at self-service storage facilities as a retail transaction for the imposition of business and occupation and sales and use taxes.

H Finance

Peterson

 

High

HB 1914(ESSB 5390)

Discover pass, day-use cost

Concerning the discover pass and distributions. (REVISED FOR ENGROSSED: Concerning access to recreation sites or lands.)

H Approps

Doglio

 

High

HB 1921 (SB 5726)

Transportation revenue

Establishing new sources of transportation revenue based on motor vehicle use of public roadways.

H Transportation

Fey

Concerns

High

Behavioral health diversion

Authorizing a qualified county to impose a tax for the funding of behavioral health diversion from the criminal justice system.

H Rules R

Farivar

 

High

Public safety funding

Improving public safety funding by providing resources to local governments and state and local criminal justice agencies, and authorizing a local option tax.

S Law & Justice

Entenman

Support

High

HB 2020 (SB 5777)

Payment card processing/tax

Creating a business and occupation tax deduction and increasing the rate for persons conducting payment card processing activities.

H Finance

Berg

 

Medium

Business and occupation tax

Investing in Washington families by restructuring the business and occupation tax on high grossing businesses and financial institutions.

 

Fitzgibbon

 

High

Intangible assets tax

Creating fairness in Washington's tax by imposing a tax on select financial intangible assets.

 

Berg

 

High

 

Investing in the state's paramount duty to fund K-12 education and build strong and safe communities.

 

Bergquist

 

High

HJR 4204 (SJR 8203)

Principal residence/tax

Amending the Constitution to allow for a property tax exemption for a principal place of residence.

H Finance

Berg

Oppose

High

SB 5167 (HB 1198)

Operating budget

Making 2025-2027 fiscal biennium operating appropriations.

S Ways & Means

Robinson

 

High

SSB 5314(2SHB 1614)

Capital gains tax

Modifying the capital gains tax.

H FINDP

Stanford

 

High

SB 5315 (HB 1126)

Local tax rate changes

Standardizing notification provisions relating to local tax rate changes and shared taxes administered by the department.

H Finance

Gildon

Support

Medium

ESSB 5390(HB 1914)

Discover pass

Concerning the discover pass and distributions. (REVISED FOR ENGROSSED: Concerning access to recreation sites or lands.)

H Approps

Stanford

 

High

SSB 5400 (HB 1836)

Local news journalism

Supporting local news journalism.

S Ways & Means

Liias

 

High

Tax and revenue laws

Modifying tax and revenue laws in a manner that is not estimated to affect state or local tax collections.

H Finance

Schoesler

 

Medium

SB 5711 (HB 1907)

Self-service storage/tax

Defining the rental or lease of individual storage space at self-service storage facilities as a retail transaction for the imposition of business and occupation and sales and use taxes.

S Ways & Means

Bateman

 

High

SB 5777 (HB 2020)

Payment card processing/tax

Creating a business and occupation tax deduction and increasing the rate for persons conducting payment card processing activities.

S Ways & Means

Robinson

Support

Medium

State employee compensation

Concerning temporary compensation reductions for state government employees during the 2025-2027 fiscal biennium.

S Ways & Means

Robinson

 

High

Tax preferences

Adopting recommendations from the tax preference performance review process, eliminating obsolete tax preferences, clarifying legislative intent, and addressing changes in constitutional law.

S Ways & Means

Salomon

 

High

Sales and use tax rate

Reducing the state sales and use tax rate.

S Ways & Means

Krishnadasan

 

High

Payroll expense tax

Enacting an excise tax on large employers on the amount of payroll expenses above the social security wage threshold to fund programs and services to benefit Washingtonians.

S Ways & Means

Saldana

 

High

Property tax

Concerning property tax reform.

S Ways & Means

Pedersen

 

High

Investment/LTSS accounts

Amending the Constitution to allow the state to invest moneys from long-term services and supports accounts.

H Approps

Braun

Support

High

SJR 8203 (HJR 4204)

Principal residence/tax

Amending the Constitution to allow for a property tax exemption for a principal place of residence.

S Rules X

Robinson

Oppose

High

Childcare

 

Bill #

Abbrev. Title

Short Description

Status

Sponsor

Position

Priority

Child care qualifications

Modifying child care provider qualifications.

S EL/K-12

Dent

 

Medium

ESSB 5509(SHB 1212)

Child care center siting

Concerning the siting of child care centers.

H Local Govt

Alvarado

 

Medium

Energy and Climate Change

 

Bill #

Abbrev. Title

Short Description

Status

Sponsor

Position

Priority

Clean fuels program

Concerning the clean fuels program.

S Environment, En

Fitzgibbon

Oppose

Medium

Climate commitment act

Amending the climate commitment act by adjusting auction price containment mechanisms and ceiling prices, addressing the department of ecology's authority to amend rules to facilitate linkage with other jurisdictions, and providing for market dynamic analysis.

S Environment, En

Fitzgibbon

Support

Medium

Environmental crimes

Concerning environmental crimes.

H Env & Energy

Trudeau

Oppose

Medium

Health Care

 

Bill #

Abbrev. Title

Short Description

Status

Sponsor

Position

Priority

Universal health care

Concerning Universal Health Care.

H HC/Wellness

Hasegawa

Oppose

High

Housing Attainability

 

Bill #

Abbrev. Title

Short Description

Status

Sponsor

Position

Priority

County REET admin. fees

Concerning county fees for administration of the real estate excise tax.

H Rules R

Wylie

Oppose

High

Lot splitting

Increasing housing options through lot splitting.

S Housing

Barkis

Support

High

Housing cost task force

Creating a task force on housing cost driver analysis.

S Housing

Klicker

Support

High

E2SHB 1217(SSB 5222)

Residential tenants

Improving housing stability for tenants subject to the residential landlord-tenant act and the manufactured/mobile home landlord-tenant act by limiting rent and fee increases, requiring notice of rent and fee increases, limiting fees and deposits, establishing a landlord resource center and associated services, authorizing tenant lease termination, creating parity between lease types, and providing for attorney general enforcement.

H Passed 3rd

Alvarado

Oppose

High

Condominium construction

Simplifying condominium construction statutes.

S Housing

Taylor

 

Medium

Multiple-unit dwellings/tax

Concerning the property tax exemptions for new and rehabilitated multiple-unit dwellings in urban centers.

S Ways & Means

Ramel

 

Medium

Deed of trust assignment/fee

Eliminating the exemption for assignments or substitutions of previously recorded deeds of trust from the document recording fee and the covenant homeownership program assessment.

S Ways & Means

Scott

 

High

Affordable housing REET

Allowing counties or cities to impose a real estate excise tax for the purpose of developing affordable housing, subject to the will of the voters.

H Rules R

Ramel

 

High

Project permit definition

Concerning the definition of project permit and project permit application.

S Loc Gov

Duerr

Support

Medium

Eminent domain purchase back

Providing owners of real estate taken through eminent domain by school districts, or sold under threat of eminent domain, the opportunity to purchase the real estate back when it is not put to intended public use.

H Civil R & Judi

Hasegawa

 

Medium

ESSB 5184(HB 1299)

Minimum parking requirements

Concerning minimum parking requirements.

H Local Govt

Bateman

Oppose

High

ESB 5471 (HB 1840)

Middle housing

Authorizing middle housing in unincorporated growth areas and unincorporated urban growth areas, certain limited areas of more intensive rural development, and fully contained communities.

H Housing

Goehner

 

High

ADU tax exemptions

Amending the county population threshold for counties that may exempt from taxation the value of accessory dwelling units to incentivize rental to low-income households.

H Finance

Gildon

Support

High

Affordable housing dev.

Concerning affordable housing development in counties not closing the gap between estimated existing housing units within the county and existing housing needs.

H Housing

Cleveland

 

Medium

Housing permitting

Encouraging construction of affordable housing by streamlining the permitting process.

H Local Govt

Gildon

Support

High

Housing opportunity zones

Concerning housing development opportunity zones.

H Local Govt

Wilson

 

High

Public Safety

 

Bill #

Abbrev. Title

Short Description

Status

Sponsor

Position

Priority

Behavioral health diversion

Authorizing a qualified county to impose a tax for the funding of behavioral health diversion from the criminal justice system.

H Rules R

Farivar

 

High

Public safety funding

Improving public safety funding by providing resources to local governments and state and local criminal justice agencies, and authorizing a local option tax.

S Law & Justice

Entenman

Support

High

Public safety/local tax

Expanding local taxing authority to fund public safety and community protection focused programs and services.

H Finance

Slatter

Support

High

Supporting Small Business

 

Bill #

Abbrev. Title

Short Description

Status

Sponsor

Position

Priority

Work restrictions/age 16, 17

Concerning restrictions on the working conditions and hours of sixteen- and seventeen-year olds.

S Labor & Comm

McClintock

Support

Medium

E2SHB 1213(SB 5539)

Paid family & medical leave

Expanding protections for workers in the state paid family and medical leave program.

S Labor & Comm

Berry

Oppose

High

HB 1275 (SB 5381)

Self-insurer withdrawal

Establishing department authority to ensure payment is received from the self-insured employer after a self-insured group or municipal employer has their self-insurer certification withdrawn.

S Labor & Comm

Scott

Oppose

Medium

SHB 1308 (SB 5345)

Access to personnel records

Concerning access to personnel records.

S Labor & Comm

Reed

Oppose

High

Transp. network companies

Concerning transportation network companies.

S Labor & Comm

Obras

 

Medium

Isolated employees

Concerning workplace standards and requirements applicable to employers of isolated employees.

S Labor & Comm

Obras

Concerns

Medium

EHB 1747 (SB 5549)

Job applicants and employees

Expanding protections for applicants and employees under the Washington fair chance act.

S Labor & Comm

Ortiz-Self

 

Medium

2SHB 1788(2SSB 5548)

Workers' compensation

Concerning workers' compensation benefits.

S Labor & Comm

Richards

Oppose

High

ESSB 5023(HB 1561)

Domestic workers

Providing labor market protections for domestic workers.

H Labor & Workpla

Saldana

Concerns

Medium

Unemp ins/strikes & lockouts

Concerning unemployment insurance benefits for striking or lockout workers.

H Labor & Workpla

Riccelli

Oppose

High

Worker leave/hate crimes

Expanding access to leave and safety accommodations to include workers who are victims of hate crimes or bias incidents.

H Labor & Workpla

Valdez

Concerns

Medium

Immigration status coercion

Protecting employees from coercion in the workplace based on immigration status.

H Labor & Workpla

Hasegawa

Concerns

Medium

Pregnancy accommodations

Expanding pregnancy-related accommodations for all employers. Only impact for construction would be the provisions requiring payment for break or leave time if accommodations not made that can adapt in a way that works during work time. Changes this piece to a wage and hour issue.

H Labor & Workpla

Nobles

 

Medium

ESSB 5291(HB 1415)

Long-term services trust

Implementing the recommendations of the long-term services and supports trust commission.

H EL & Human Svc

Conway

 

Medium

Family & medical leave rates

Concerning paid family and medical leave rates.

H Labor & Workpla

Conway

Oppose

Medium

SSB 5408 (HB 1831)

Wage and salary disclosures

Allowing for corrections to wage and salary disclosures.

H Labor & Workpla

King

Support

Medium

Layoffs

Concerning employment loss due to businesses closing or mass layoffs.

H Labor & Workpla

Cleveland

 

Medium

Transportation

 

Bill #

Abbrev. Title

Short Description

Status

Sponsor

Position

Priority

County ferry contracts

Concerning county ferry maintenance and repair contracts.

S Rules 2

Leavitt

 

High

HB 1227 (SB 5161)

Transportation budget

Making transportation appropriations for the 2025-2027 fiscal biennium.

H Transportation

Fey

 

High

Ferry system salaries

Concerning the salaries of ferry system collective bargaining units.

S Transportation

Fey

Support

High

Clean fuels program

Concerning the clean fuels program.

S Environment, En

Fitzgibbon

Oppose

Medium

Roadway safety account use

Expanding access to funding from the multiuse roadway safety account for eligible cities and for the Washington state departments of natural resources and fish and wildlife for maintenance and guidance of motorized recreation on green dot roads.

S Transportation

Barkis

 

High

Transp. project permitting

Convening a work group regarding the streamlining of permitting for transportation projects.

S Transportation

Richards

Support

Medium

HB 1921 (SB 5726)

Transportation revenue

Establishing new sources of transportation revenue based on motor vehicle use of public roadways.

H Transportation

Fey

Concerns

High

Passenger-only ferries

Increasing the availability of passenger-only ferries by establishing the mosquito fleet act.

S Transportation

Nance

Support

High

Transportation resources

Concerning transportation resources.

H Transportation

Fey

Concerns

High

SB 5161 (HB 1227)

Transportation budget

Making transportation appropriations for the 2025-2027 fiscal biennium.

S Transportation

Liias

 

High

Toll rate setting process

Streamlining the toll rate setting process at the transportation commission.

H Transportation

Ramos

 

Medium

Transportation procurement

Concerning alternative procurement and delivery models for transportation projects.

H Transportation

Liias

 

High

Workforce Education

 

Bill #

Abbrev. Title

Short Description

Status

Sponsor

Position

Priority

Dual credit program access

Improving student access to dual credit programs.

S Higher Ed & Wor

Paul

Support

Medium

Financial education

Making financial education instruction a graduation requirement in public schools.

S EL/K-12

Rude

Support

Medium

CTE careers work group

Improving access to career opportunities for students.

S EL/K-12

Connors

 

High

Partner promise scholarships

Encouraging local government partner promise scholarship programs within the opportunity scholarship program.

S Higher Ed & Wor

Bergquist

Support

High

SSB 5253(SHB 1257)

Special education services

Extending special education services to students with disabilities until the end of the school year in which the student turns 22.

H Approps

Cortes

Support

High

Special education funding

Concerning special education funding.

H Approps

Pedersen

Support

High

2SSB 5358(HB 1280)

Career & tech. ed./6th grade

Concerning career and technical education in sixth grade.

H Approps

Braun

Support

Medium

Higher education funding

Increasing state funding to expand access to higher education.

S Ways & Means

Hansen

 

High

Uncategorized Bills

 

Bill #

Abbrev. Title

Short Description

Status

Sponsor

Position

Priority

Intangible assets tax

Enacting a tax on stocks, bonds, and other financial intangible assets for the benefit of public schools.

S Ways & Means

Frame

 

High

 

Bill Status & Upcoming Events Report
March 21, 2025
Page 1 of 2

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