Legislative Report
By Boswell Consulting
The 2025, 105-day legislative session is on its final stretch. April 2 was the cutoff where all bills that passed their chamber of origin needed to be passed by the opposite chamber policy committee to stay alive this session. Many majority party priority bills made it through the cutoff and are still in play including rent stabilization, unemployment for striking employees, extended producer responsibility, and paid family medical leave.
As we enter the final weeks of the legislative session, the focus has shifted to the 2025-27 biennial budgets and the associated revenue proposals. Please refer to our tax summary for an in-depth look at all of the different revenue proposals. As a reminder, the legislature is required to pass a balanced budget before adjourning this session.
Budget and Revenue Update
On March 31, the House and Senate released their 2025-27 Capital Budget Proposals, which outline the state’s infrastructure spending over the next two years within Washington’s constitutional debt limit. The House and Senate propose spending $7.6 billion and $7.3 billion, respectively. The proposals set aside $1 billion for education, more than $720 million for housing, $2 billion for behavioral health and $2 billion for natural resources. The Senate plan relies on $391 million from Climate Commitment Act dollars, and the House version $299 million.
As the conversation in Olympia has shifted largely to new taxes, Gov. Bob Ferguson held a press conference on April 1 and said he would not sign a spending plan that was dependent on revenue from new and untested taxes, like the wealth tax. He did leave the door open for a limited wealth tax of no more than $100 million a year to test if the tax can be held up in court. Critics of the tax have asserted that in addition to driving wealthy individuals out of Washington state the tax would violate the U.S. Constitution because it would tax out-of-state wealth.
Both Chambers will continue to work on their respective budget proposals through the legislative process as negotiations take place. Fiscal committees will work to pass bills in advance of the April 8 Opposite House Fiscal Committee Cutoff. Following Tuesday’s cutoff, legislators will head to the floor to pass bills.
Please see below for key insights from week 12:
Employment Law
Senate Bill 5041 seeks to extend unemployment benefits to employees involved in strikes and lockouts, remove certain disqualifications, and shift the financial responsibility for benefits to the employer involved in the labor dispute. The bill had a public hearing in the House Appropriations Committee on April 4 and is scheduled for executive action on April 7. The Seattle Metro Chamber testified in opposition to this legislation.
House Bill 1213 focuses on expanding employee protections and clarifying employer responsibilities under Washington’s Paid Family and Medical Leave program, with an effective date of Jan. 1, 2026. House Bill 1213 was heard in the Senate Ways & Means Committee on April 5 and is scheduled for executive session on April 8.
Taxes/Budget
House Bill 2046 establishes a tax on financial intangible assets exceeding $50 million to fund education programs. The tax, effective Jan. 1, 2026, applies to Washington residents at a rate of $8 per $1,000 of the true and fair value of their taxable worldwide intangible assets, with specific exemptions and provisions for administration and enforcement. Revenue generated will be dedicated to the education legacy trust account supporting K-12 schools, higher education, early learning, and childcare programs. A public hearing was held in the House Finance Committee on April 3, but executive session has yet to be scheduled.
House Bill 2045 proposes changes to Washington state’s B&O tax structure by introducing a 1% surcharge on taxable income exceeding $250 million for high-grossing businesses and increasing the existing surcharge on large financial institutions from 1.2% to 1.9%. The bill aims to generate additional revenue to fund K-12 education, public safety, health care, and other human services. A public hearing was held in the House Finance Committee on April 3 but executive action has yet to be scheduled. Seattle Metro Chamber President and CEO Rachel Smith, testified in opposition to this legislation.
Housing
House Bill 1217 seeks to cap annual rent and fee increases at 7%, enhance tenant protections, and establish new notice requirements for landlords under Washington’s landlord-tenant laws. The bill had a public hearing in the Senate Ways & Means Committee on April 4 and is scheduled for executive session on April 7.
House Bill 1491 mandates higher-density, transit-oriented development, requiring cities to adopt regulations that facilitate multifamily housing and mixed-use projects in designated station areas. A public hearing was held in the Senate Ways & Means Committee on April 4 and executive session is scheduled for April 7.
House Bill 1494 refines property tax exemption criteria for multi-unit housing to prioritize affordability and anti-displacement measures. The bill updates definitions, eligibility, and administrative processes, emphasizing affordability requirements, transit proximity, and compliance mechanisms for local governments and property owners. Executive action was taken in the Senate Ways & Means Committee on April 3, resulting in a majority recommendation to pass the bill.
Economic Development
House Bill 1515 seeks to expand alcohol service options in public spaces and civic campuses, including shared outdoor and indoor service areas and a new license for nonprofit organizations to serve alcohol at community events. The bill had a public hearing in the Senate Ways & Means Committee on April 5 and is scheduled for executive session on April 8.
Important Session Dates
- April 8, 2025: Opposite House Fiscal Cutoff
- April 16, 2025: Opposite House Floor Cutoff
- April 27, 2025: Last Day of Session
Get Advocacy Text Alerts
Did you get our text messages about the latest Seattle Metro Chamber advocacy effort?
If not: Text SEATTLE to 52886 and never miss an update.