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Bill

HB 2045

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

2025-2026 Regular Session Introduced by Liz Berry and 19 co-sponsors

HB 2045 restructures Washington's B&O tax on high-grossing businesses and financial institutions to generate family investment revenue.

Public hearing in the House Committee on Finance at 8:00 AM.
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Bill Summary · HB 2045

Legislative bill overview

HB 2045 proposes restructuring Washington's business and occupation (B&O) tax specifically targeting high-grossing businesses and financial institutions. The bill aims to generate revenue to invest in Washington families, presumably through increased tax rates or new tax brackets applied to larger corporate entities. This represents a significant modification to Washington's existing tax structure, which currently applies relatively uniform B&O tax rates across business categories.

Why is this important

Washington has no state income tax and relies heavily on B&O taxes and sales taxes for revenue, making tax structure changes particularly consequential for state funding. How the state funds education, healthcare, and social services directly affects household budgets and business operations. The outcome will signal whether Washington intends to shift more tax burden toward large corporations or maintain current distribution, affecting both state revenue capacity and business competitiveness.

Potential points of contention

  • Definitional precision: "High grossing" and affected "financial institutions" require clear thresholds; ambiguity could create compliance uncertainty and litigation risk
  • Economic competitiveness: Higher taxes on large businesses and financial firms may drive relocation to neighboring states or reduce headquarters expansion in Washington
  • Regressive impact trade-offs: While targeting large businesses appears progressive, increased costs could be passed to consumers or employees, potentially affecting working families the bill aims to help
  • Revenue predictability: Financial institution revenues are volatile; relying on them for family investment funding creates budgetary uncertainty

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

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