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Bill

HB 2081

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 Liz Berry and 7 co-sponsors

Washington raises B&O tax surcharges and caps on advanced computing, adds temporary surcharge on large corporations, and clarifies investment deductions, effective July 27, 2025.

Effective date 7/27/2025*.
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WeVote Research Nonpartisan
Bill Summary · HB 2081

Legislative bill overview

HB 2081 modifies Washington State's business and occupation (B&O) tax by adjusting surcharge rates, raising the advanced computing surcharge cap, and creating a new temporary surcharge on large companies. The bill also clarifies tax deductions for certain business investments. These changes take effect July 27, 2025.

Why is this important

B&O tax changes directly affect business operating costs and state revenue, which influences both corporate competitiveness and funding for public services. Washington relies heavily on B&O taxes since it has no state income tax, making adjustments to this tax particularly significant for state budgets and business operations across the state.

Potential points of contention

  • Large company surcharge impact: The temporary surcharge on large companies could be viewed as preferentially targeting bigger businesses, raising concerns about competitive fairness or as a necessary revenue measure depending on political perspective.
  • Advanced computing surcharge cap increase: Raising the cap may increase costs for tech and data center industries, which are major employers in Washington, potentially affecting their expansion plans or competitiveness.
  • Investment deduction clarification: Changes to deductions for certain investments could benefit some business sectors while disadvantaging others, creating winners and losers in the tax structure.

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

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