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Bill

SB 6297

Making temporary staffing services provided to nonprofit behavioral health entities exempt from retail sales tax.

2025-2026 Regular Session Introduced by Perry Dozier and 2 co-sponsors

Exempts the sale of temporary staffing services to nonprofit behavioral health entities from Washington retail sales tax.

By resolution, returned to Senate Rules Committee for third reading.
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WeVote Research Nonpartisan
Bill Summary · SB 6297

Overview

  • Bill: SB 6297
  • Session: 2025-2026 (Washington)
  • Purpose: Exempt temporary staffing services provided to nonprofit behavioral health entities from Washington retail sales tax
  • Status: Passed in Senate (Third Reading completed March 3, 2026); referred to Rules; action history indicates movement toward potential enactment
  • Primary sponsors: Senators Muzzall, Dozier, Wagoner

Main purpose and intent

The bill adds a targeted exemption from the Washington retail sales tax for temporary staffing services when the services are provided to nonprofit behavioral health entities. The intent is to reduce the tax burden on nonprofits delivering behavioral health services by removing tax on a staffing support cost that these entities rely on to meet staffing needs.

Key provisions and changes

  • Amends RCW 82.04.050 and creates a new section to implement the exemption.
  • Definition alignment:
    • Clarifies that “temporary staffing services” are the services that supply workers to another business for limited periods to supplement their workforce.
    • Specifies that the exemption applies only when temporary staffing services are provided to a “nonprofit behavioral health entity.”
    • A nonprofit behavioral health entity is defined as a nonprofit under RCW 84.36.800 that is exempt from federal income taxation under 26 U.S.C. Sec. 501(c)(3) and provides behavioral health services (per RCW 71.24.025).
  • Scope of exemption:
    • The exemption applies to the sale at retail of temporary staffing services to such nonprofit behavioral health entities.
    • Temporary staffing services are otherwise defined in RCW 82.04.540 for purposes of the general tax base, with the bill carving out the specific exception for nonprofits in the behavioral health space.
  • Consistency with existing tax structure:
    • The amendment sits within the broader framework of what counts as a “sale at retail” or “retail sale” for tangible personal property and services, ensuring the temporary staffing exemption does not disrupt other categories or related definitions.

Who is affected

  • Directly affected: nonprofit behavioral health entities in Washington state that utilize temporary staffing services to support their operations.
  • Temporary staffing providers: these entities would no longer owe retail sales tax on charges for supplying temporary staff to qualifying nonprofit behavioral health entities.
  • Indirect beneficiaries: the communities served by nonprofit behavioral health providers, which may see more cost-effective staffing models and potentially enhanced service capacity due to tax relief.

Procedural and timeline aspects

  • Introduction and first reading: January 23, 2026.
  • Referred to Committee: Ways & Means.
  • Public hearing: February 5, 2026.
  • Senate action:
    • Majority “do pass” in Ways & Means: March 2, 2026.
    • Third Reading and passage in the Senate: March 3, 2026 (yeas 47, nays 1, others noted).
    • Action then moved to Senate Rules Committee (as part of the normal flow for finalizing floor action).
  • Next steps: If enacted, the exemption would take effect according to the bill’s effective date (not explicitly stated in the text provided). The bill also notes that New Section Sec. 2 clarifies that certain existing tax provisions do not apply to this act (RCW 82.32.805 and 82.32.808).

Practical impact

  • Tax relief for nonprofit behavioral health providers: reduces operating costs related to temporary staffing, allowing more funds to be directed toward direct patient services.
  • Administrative considerations: nonprofits would need to ensure vendors supplying temporary staff to them qualify under the exemption criteria (nonprofit, 501(c)(3) with behavioral health services), to preserve the tax benefit.
  • Market effects: may incentivize more vendors to target contracts with qualifying nonprofit behavioral health entities, potentially improving staffing flexibility and resilience.

Notable details

  • The bill is narrowly tailored to a specific sector (nonprofit behavioral health) and a specific service (temporary staffing).
  • It fits within the broader context of Washington’s sales tax definitions and exemptions for various service and product categories.
  • The act includes a new section and references to ensure consistency with RCW tax framework and excludes the exemption from certain unrelated tax provisions (Sec. 2 note).

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

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