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Bill

SB 5815

Modifying business and occupation tax surcharges, rates, and the advanced computing surcharge cap, clarifying the business and occupation tax deduction for certain investments, and creating a temporary business and occupation tax surcharge on large companies.

2025-2026 Regular Session Introduced by Noel Frame and 5 co-sponsors

Washington bill SB 5815 increases B&O tax surcharges and creates new temporary surcharge on large companies to raise state revenue.

Executive session scheduled, but no action was taken in the Senate Committee on Ways & Means at 9:00 AM.
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WeVote Research Nonpartisan
Bill Summary · SB 5815

Legislative bill overview

SB 5815 modifies Washington state's business and occupation (B&O) tax system by adjusting surcharge rates, raising the advanced computing surcharge cap, and creating a new temporary surcharge specifically targeting large companies. The bill also clarifies tax deductions for certain investments to potentially broaden the tax base.

Why is this important

Washington relies heavily on B&O taxes as a major revenue source since it has no state income tax. Changes to these rates and surcharges directly affect business operating costs and state funding for public services, schools, and infrastructure. The new large company surcharge represents a policy shift toward progressive taxation that could influence business investment and location decisions in the state.

Potential points of contention

  • Business opposition: Large companies subject to the new surcharge may argue it creates competitive disadvantages compared to other states and could reduce Washington investment or trigger relocation
  • Revenue uncertainty: The effectiveness and actual revenue generation of a temporary surcharge depends on economic conditions and business responses, making budget planning difficult
  • Definition disputes: How "large companies" are defined and which business sectors are affected will likely generate debate about fairness and unintended consequences across different industries

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

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