Bill
SB 5799
Imposes a 0.4% B&O tax on Washington social media platforms to fund a Youth Behavioral Health Account for school-aged through 25-year-olds' behavioral health programs.
SB 5799 — Summary
Overview
- Purpose: Establish a dedicated youth behavioral health funding source in Washington State by imposing a new business and occupation (B&O) tax on social media platforms. Create a Youth Behavioral Health Account to fund targeted behavioral health initiatives for prenatal through age 25, with emphasis on school-aged youth and multisystem coordination.
- Status: First reading, referred to Ways & Means (introduced March 24, 2025).
- Effective date: January 1, 2026.
What the bill would do
- New tax on social media platforms:
- Beginning January 1, 2026, impose an additional B&O tax equal to 0.4% of the platform’s gross income that is subject to Washington B&O tax (base defined by RCW 82.04.290).
- Applies to for-profit social media platforms operating in Washington; exempts organizations that are exempt from federal income tax under 26 U.S.C. § 501(c)(3).
- The term “social media platform” includes websites, apps, or internet-based services that allow accounts/profiles for social interaction and user-generated content (text, links, photos, audio, video). Excludes services predominately for email/direct messaging, online gaming, business/product reviews, technical support, academic research, or other non-social-interaction-focused services.
- Youth Behavioral Health Account:
- Created in the state treasury. All receipts from the new tax are deposited into this account.
- Funds may be expended only after appropriation and solely for:
- Behavioral health needs identified by the Washington thriving prenatal through 25 behavioral health strategic plan and the children and youth behavioral health work group (prenatal through age 25).
- Funding the Health Care Authority’s pilot program for telebehavioral health services for school-aged youth.
- Supporting the Governor’s office efforts for prenatal through 25 behavioral health, including:
- The children and youth multisystem care coordinator
- Services and supplies necessary to resolve complex care cases
- The work of a Chief Officer of Youth Behavioral Health
- Rules and scope:
- The act specifies that funds are dedicated to the identified plan and programs and are not available for general state expenditures without appropriation.
- The act explicitly states it does not apply RCW 82.32.805 and 82.32.808 (i.e., certain other tax provisions do not apply to this act).
Who is affected
- Social media platforms operating in Washington (broadly defined, for-profit entities subject to B&O tax).
- Washington residents, particularly youth up to age 25, who would benefit from the funded behavioral health initiatives.
- State agencies and offices involved in youth behavioral health: Health Care Authority, Governor’s office (including the multisystem care coordinator and the Chief Officer of Youth Behavioral Health), and the Washington thriving prenatal through 25 behavioral health strategic plan body.
Key provisions and details
- Tax base and rate: 0.4% of the platform’s gross income taxable under RCW 82.04.290.
- Exemptions: 501(c)(3) organizations are exempt from the additional tax.
- Fund use restrictions: Only for specified youth behavioral health purposes and programs identified in the plan, including telebehavioral health pilots and governor-supported care coordination efforts.
- Definitions: Clear definition of “social media platform” to distinguish from non-social-interaction services.
- Timing: New tax starts January 1, 2026; revenue deposited into the Youth Behavioral Health Account and appropriated for the listed purposes.
Procedural notes
- Legislative action status as of the provided data: First reading, referred to Ways & Means.
- Next steps would typically include committee review, potential amendments, floor votes in the Senate and House, and final passage before any potential gubernatorial signature.
In short, SB 5799 would create a dedicated funding stream for youth behavioral health in Washington by taxing social media platforms at 0.4% of gross income, with receipts placed in a new Youth Behavioral Health Account to support telebehavioral health pilots, care coordination, and system-wide youth mental health initiatives.
Compiled from official sources — confirm details with the bill’s official record.
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