The following bills were passed by the Washington State Legislature in 2025 and will impact Washington’s business community. The laws go into effect on or before July 27.
Business & Individual Tax Increases
ESHB 2081: Modifying the Business and Occupation Tax
Raises business taxes significantly, especially for large and high-revenue companies.
Introduces significant changes to Washington state’s Business and Occupation (B&O) tax structure, impacting employers across various sectors. Beginning on Oct. 1, 2025, the bill includes a broad-based B&O increase to 0.5% for business activities including retailing, insurance, research and development, tooling manufacturing, and more. See bill report linked above for fill list. The bill also increases the B&O rate for services and other activities for businesses with a gross income of over $5 million to 2.1%. Starting Jan. 1, 2026, an additional B&O tax will be imposed on businesses with at least $250 million in Washington taxable income. The additional tax will be equal to 0.5% of the business’ taxable income over $250 million (in addition to the other B&O taxes). This surcharge will expire on Dec. 31, 2029. Beginning Oct. 1, 2025, the additional B&O on certain financial institutions will be increased to 1.5%. The bill also includes an advanced computing surcharge to 7.5% and increases the annual cap to $75 million beginning Jan. 1, 2026.
SB 5814: Modifying certain excise taxes
Applies sales tax to more service industries and redefines what counts as a retail service.
Changes Washington state’s excise tax structure. The following select services are reclassified as retail services and subject to retail sales and use tax and retailing B&O:
- Information technology training services and technical support
- Custom web development services
- Custom software and customization of prewritten computer software
- Investigation, security services, security monitoring services, and armored car services
- Temporary staffing services
- Advertising services
- Any services that primarily involves the application of human effort by the seller
- Live presentations
- Advertising services
- Digital processing services
The changes exclude temporary staffing services used by hospitals, telehealth and telemedicine services, certain advertising services such as web hosting and domain name registration, services when the sale of such service is between members of an affiliated group, and others. See linked bill report for all exemptions. The bill also expands the definition of nicotine products to include products that include nicotine derived both synthetically and through tobacco and makes them subject to the Other Tobacco Products Tax.
ESSB 5801: Concerning Transportation Resources
Increases gas taxes and vehicle-related fees across the board.
Updates Washington state’s transportation-related fees and taxes. The bill increases the fuel tax rate for motor vehicle fuel and special fuel by $0.06 per gallon to a total of $0.554 per gallon, and special fuel will see an additional tax rate of 3 cents per gallon, with another 3 cents per gallon added in July 2027. Fuel tax rates will be adjusted according to inflation starting in 2026. The bill increases several vehicle related fees and taxes, including: passenger vehicle weight fees, license fee by weight for trucks, title and registration services fees, filing fees, abandoned recreational vehicle disposal fee, motor vehicle sales and use tax, rental car tax, peer-to-peer vehicle sharing, recreational vessels tax, luxury vehicle tax, luxury noncommercial aircraft tax, tire fee, work zone safety camera penalties, and driver license fees. See linked bill report for exact fee schedules.
Corporate Governance & Employment Law
SSB 5408: Allowing for corrections to wage and salary disclosures.
Employers can now fix wage disclosure errors before facing penalties.
Under the Washington’s Equal Pay & Opportunities Act, employers with 15 or more employees must disclose wage scale or salary range in job openings. This bill allows covered employers to correct non-compliant wage postings before a job applicant may seek administrative remedies or file a private right of action. Any person may provide written notice to an employer alleging noncompliance, and the employer must correct the posting or ask a third-party contractor to do so (in writing) within 5 business days of notice or be subject to penalty. Also under the bill, employers must now post a fixed wage instead of a range or scale when only a fixed wage is offered.
SB 5122: Enacting the uniform antitrust premerger notification act.
Requires some companies to send merger paperwork to the Washington Attorney General.
Requires companies filing federal premerger notifications under the Hart-Scott-Rodino (HSR) Act to submit those filings to the Attorney General if certain conditions apply. Those conditions include having a principal place of business in Washington, having Washington net sales above 20% of the HSR filing threshold, or being a health care provider operating in the state. Filings must be submitted electronically, and noncompliance can result in civil penalties of up to $10,000 per day.
SB 5006: Updates Washington’s corporation acts
Updates Washington’s corporate governance rules to allow more flexibility and lower dissolution voting thresholds.
Updates Washington’s Business Corporation Act with several changes to corporate governance rules. The bill allows for-profit and nonprofit boards to establish committees with fewer restrictions, including permitting single-member committees and allowing alternate members. It also clarifies procedures for issuing rights, options, and warrants, defines rights for former shareholders in share exchanges, and establishes dissenters’ rights when a corporation converts to another entity type. It also lowers the vote threshold for voluntary dissolution from two-thirds to a simple majority for corporations formed on or after Aug. 1, 2024.
SHB 2047: Eliminating the Washington Employee Ownership Program
Eliminates a state program that helped companies become employee-owned.
Eliminates the state’s Employee Ownership Program, which was established to promote and support employee ownership models like worker cooperatives and employee stock ownership plans. No new provisions or replacement programs are created in its place. Employers considering employee ownership transitions will no longer have access to state-supported guidance. The tax credit may not be claimed on returns filed for tax periods starting on or after July 1, 2026.
Liquor Sales & Business Licenses
2SSB 5786: Increasing license, permit, and endorsement fees
Increases business license and permit fees, including for liquor and cannabis.
Raises license, permit, and endorsement fees across many regulated industries, including liquor, cannabis, and professional occupations. Click on the bill report linked above for the full list of impacted licenses. Additionally, the application fee for retail licenses is increased by 50%. The Liquor and Cannabis Board and other agencies will implement the changes, resulting in immediate cost increases for businesses in those sectors.
SB 1515: Modernizing the regulation of alcohol service in public spaces
Expands where alcohol can be sold at public events and creates new event licenses.
Allows local governments to request approval from the Liquor and Cannabis Board (LCB) to expand outdoor and indoor alcohol service areas during public events, including those on publicly owned civic campuses in cities with populations over 400,000. The bill introduces a new special community event license for nonprofit organizations to sell spirits, beer, and wine by the individual serving at specified events. This license permits alcohol sales without requiring food service in the alcohol service area, although food must still be provided within the licensed premises. The legislation is designed to enhance public safety, improve crowd management, and prepare for large-scale events such as the 2026 FIFA World Cup.
SB 1698: Updating liquor permit and licensing provisions
Updates liquor server permit rules and clarifies who must be certified.
Updates Washington state’s alcohol server and licensing regulations. The bill changes the term “retail licensed premises” to “on-premises licensed facility,” broadening the definition to include all licensed facilities that sell or serve alcohol primarily for on-premises consumption, such as breweries, microbreweries, and specialty shops with tasting activities. It clarifies that individuals employed at these facilities in roles involving the compounding, sale, service, or handling of liquor must hold a Class 12 or Class 13 alcohol server permit. The bill eliminates the requirement for the Liquor and Cannabis Board to mandate video training for Class 13 permit applicants.
Childcare Providers
SB 1648: Modifying childcare provider requirements
Gives childcare employees more time and flexibility to meet staff qualification requirements.
Updates childcare provider qualifications in Washington state by requiring the Department of Children, Youth, and Families to allow providers until at least Aug. 1, 2030, to fulfill staff qualification requirements by earning Early Childhood Education credentials or completing the community-based training pathway. As an alternative, the department must also allow providers to demonstrate experienced based competency. Under the experience-based pathway, providers with at least seven years of cumulative experience in qualifying roles can meet staff qualification requirements.