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Bill

HB 2100

Enacting an excise tax on large operating companies on the amount of payroll expenses above the minimum wage threshold of the additional medicare tax to fund services to benefit Washingtonians and establishing the Well Washington fund account.

2025-2026 Regular Session Introduced by Beth Doglio and 9 co-sponsors

Washington creates payroll excise tax on large companies to fund state services through new Well Washington fund account.

Prefiled for introduction.
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WeVote Research Nonpartisan
Bill Summary · HB 2100

Legislative bill overview

HB 2100 proposes a payroll-based excise tax on large operating companies in Washington State, targeting payroll expenses above a threshold indexed to federal Medicare tax rates. The revenue collected would fund a "Well Washington fund account" to provide various services benefiting Washington residents.

Why is this important

Payroll taxes directly affect business operating costs and labor market dynamics. The revenue generated could significantly fund state services, but the tax structure and threshold mechanism will determine whether it impacts small businesses, affects hiring decisions, or creates compliance burdens. This represents a new revenue mechanism for Washington, which has historically relied on sales and B&O taxes.

Potential points of contention

  • Business competitiveness concerns: Large employers may argue the tax increases labor costs, potentially reducing hiring, wage growth, or causing relocation to other states with lower payroll tax burdens
  • Threshold mechanics: The connection between "additional Medicare tax" thresholds (federal income-based employee thresholds) and a state payroll tax base is unconventional and may create complexity in determining which companies and payroll amounts are taxable
  • Definition of "large operating companies": The bill's exact scope regarding company size, out-of-state businesses, and multi-state operations is unclear from the title alone and could significantly affect implementation and fairness across industries

Compiled from official sources — confirm details with the bill’s official record.

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