[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6268700,"mediaKeyId","3051157-285d671973cae15e91c49e90c565482d","parentId",3051157,"title","Committee hears HB 2084 to repeal tax preferences for bullion, change self-storage taxation, and remove pharmacy warehousing rate","audioSeconds",2780,"startMs",4480000,"endMs",7260000,"viewUrl","/Search/View?dp=1&key=3051157-285d671973cae15e91c49e90c565482d&start=4480&end=7260","thumbnailUrl","https://assets.pipeline.soar.com/3051157-285d671973cae15e91c49e90c565482d/thumbnail_4480000.jpg","articleUrl","/articles/6268700/Washington/Committee-hears-HB-2084-to-repeal-tax-preferences-for-bullion-change-self-storage-taxation-and-remove-pharmacy-warehousing-rate","mediaUrl","https://secure.pipeline.soar.com/6268700-f7de08f851a18d4055ba8d4c67119309/orig.mp4?Expires=1770445424&Signature=QJAIqjbl5DRLBPUVp9TKeKz22jsBHleI9BRBuOc55GwmK8D8IiXGFXS3bCwkP3hA5FvhLIzYUCwEoXb7WhLwPHPEGWB56bv3EmilZkkIpUAf-BjMEKSTJOVLpoKI3r2BrzU7arD3TuLEEgvuDs7JHFhnKCwr-axRLu-UIgHrPnHazb3S0tz4LdbjCNOVInKCKHmQAH3jQD7OfOaC1kIGZcBMqLPLCRpZ8UXbhy1TYMSvJ8nlX9uE2WanDS9P47e5tnIf0AijpbtQKWSh2AIlmmBV4I6TI-JOVzLPuYElvcyj9isBTzoEcjMX2cVnZgTH134iy4CEtnxTSsMp~fhZmA__&Key-Pair-Id=KUT5TJCACFTXG","author","House Finance","date","2025-04-18T00:00:00Z","article","House Bill 2,084 would close several longstanding tax preferences: repeal the sales-tax and B&O exemption for sales of precious-metal bullion and coins, subject monetized bullion to the same rules as other taxable goods; treat rental revenue from individual self‑storage units as taxable business activity rather than an exempt real-property rental in some circumstances; and remove a preferential wholesaling B&O rate for businesses that warehouse and resell prescription drugs.

Under staff briefing, the bullion and wholesale-pharmacy changes would generally take effect Oct. 1, 2025; the self-storage rental change was presented with an effective date in committee materials of April 1, 2026 (staff noted some Department of Revenue assumptions used a later effective date). The Department of Revenue’s fiscal estimate included roughly $102.9 million in additional revenue for the 2025–27 biennium and $150.9 million for 2027–29 (about $253.8 million over four years), though staff cautioned assumptions about taxpayer behavior and effective dates affect the sum.

Supporters framed HB 2,084 as a progressive revenue step to protect education, health care and public safety without raising taxes on low‑income households. Testimony from educators, health professionals and anti‑poverty organizations emphasized service and classroom impacts if revenue is not raised. Representative Alex Ramel, the bill sponsor, said the proposal asks whether the legislature will continue “exemptions and preferences” for certain sectors and urged using repealed preferences to fund state priorities.

Opponents focused on targeted harms. Precious-metal and rare-coin dealers warned repeal would push buyers to neighboring states or online vendors, reduce statewide commerce related to coin shows and collectors, and harm small investors who buy small quantities of coin or bullion. Pharmacy-distribution and grocery witnesses said ending the preferential B&O rate for wholesalers would raise costs on pharmacies and could jeopardize retail pharmacy viability, especially in rural areas where pharmacies operate on slim margins and do not control reimbursement rates.

Self‑storage operators and associations said reclassifying individual unit rentals as taxable business activity would disproportionately affect small, family‑owned storage operators and customers who use units out of necessity (military families, people facing housing disruptions, caregivers, small-business owners). Industry witnesses also raised constitutional arguments, citing Washington Supreme Court uniformity precedent that treats rental income from real property as property tax subject to a uniformity requirement (Article VII, Section 1 of the Washington Constitution). Several witnesses asked the committee to refine statutory language to avoid unintended taxation of other types of leased real property.

The committee heard extensive public testimony for and against the bill and closed the hearing without taking final action. Staff requested amendment drafts by the committee’s deadline for technical fixes and clarifications, including language that would ensure the policy targets only the intended transactions and preserves existing exemptions where the legislature intends them to remain.

","mediaType","Video","parentTitle","House Finance - 4/18/2025 8:00 AM","oneSentenceSummary","House Bill 2,084 would repeal B&O and sales-tax preferences for certain transactions — including precious-metal bullion sales, some self-storage rentals and a warehouse wholesaler rate for prescription drugs — and direct additional revenue to state needs such as education and public safety.","taxTitle","Finance, House of Representatives, Legislative Sessions, Washington","taxId",20261,"location","Washington","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6268709,"House Finance hears proposal to tax surplus ZEV credits, divide revenue for EV incentives and state funds",1745,835000,2580000,"/Search/View?dp=1&key=3051157-285d671973cae15e91c49e90c565482d&start=835&end=2580","https://assets.pipeline.soar.com/3051157-285d671973cae15e91c49e90c565482d/thumbnail_835000.jpg","/articles/6268709/Washington/House-Finance-hears-proposal-to-tax-surplus-ZEV-credits-divide-revenue-for-EV-incentives-and-state-funds","https://secure.pipeline.soar.com/6268709-ec39098da47a3c4a504c53f371d7b510/orig.mp4?Expires=1770445424&Signature=SL786guY6vl1eyNdMCvu0lfbXD7p5qMTMm8MQJcq0hYxGE3nbPEtY6Sttnia2vJxlAIAhCJY4vyaGd4EvCf8s8t6VyJmb18t0Ybf2t5cIEwGyCr8JiYJbfWpPFHCLXMt2oE4grPKbsmDez826jnTzkB97SM4ObPAAtV3jlD0~3ykXf~iK~IkzGL7mLlCiD0K86RL6nEgEGbuiA6Zi6FaZZ~YmSxdRxmD~j1y1EpU~CgCaMKjaJ3Rh2wJl7fvHHlGXh7qOvK7Hg8~K~CmqHJLoIixPOjiaDXY5MtQnauOXhG6k5YshF4Rb53VYjQBX8L7A~NU6ENWmmg7q38cohe-fA__&Key-Pair-Id=KUT5TJCACFTXG","Under House Bill 2,077, an excise tax would apply to the sale and banking of surplus zero-emission-vehicle (ZEV) credits, with revenues split between electric vehicle incentive accounts and the state general fund before later routing some funds to a carbon emissions reduction account.

The bill would impose a 2 percent excise tax on transactions where a ZEV credit is sold to another manufacturer and a 10 percent tax on the privilege of banking (holding) a ZEV credit. For credits a manufacturer 'pulls' (uses) the bill treats pulled credits as sold and generally applies a 10 percent rate; the bill modifies that rate for the model-year-2025 ZEV program to 50 percent unless a manufacturer demonstrates delivery or sale in Washington at parity with its average Section 177 state deliveries, in which case the rate would be 10 percent. The bill exempts certain small-volume activity and requires reporting and Department of Revenue calculations and notices of tax liability.

The bill’s fiscal note assumes a ZEV credit value of about $6,000 for model year 2026 and estimates large revenue gains: roughly $77.9 million in fiscal 2027 and larger sums across the 2027–29 biennium. The proposal directs 30 percent of revenue to the electric vehicle incentive account and 70 percent to the state general fund until June 30, 2027; beginning July 1, 2027 the 70 percent share would go to the Carbon Emissions Reduction Account. The Department of Revenue would administer the tax and may adopt rules under its administrative provisions.

Supporters at the hearing framed the bill as closing a loophole that allows manufacturers to earn windfall profits from trading or banking ZEV credits rather than reinvesting in Washington. Lauren Boyne, a public worker and union member, said the proposal would reinvest revenue in environmental justice programs and help the state address its budget shortfall. Eli Taylor Goss, executive director of the Washington State Budget and Policy Center, called the tiered tax a \"smart tool to bring in much needed revenue.\" Maggie Humphreys of MomsRising said the bill would stabilize the general fund and protect services that serve families.

Automakers and some environmental advocates opposed the measure. Jeff Gomboski, testifying for Tesla, said the bill \"runs counter to the intent of the surplus ZEV credits program\" and could reduce the credits’ value and their role in the multi-state market. Rivian’s Troy Nichols warned the tax could \"undermine the foundational principles of the ZEV program\" and create legal and accounting challenges for banked credits. The Natural Resources Defense Council’s Kate White Tudor said banked credits were not \"windfall profits\" but an intended compliance mechanism and urged the committee to set the bill aside.

Other testimony highlighted tradeoffs: supporters tied the revenue to avoiding deep cuts to education, health care and early learning; opponents warned of higher EV costs and possible impacts on EV adoption and the credit market. Several speakers urged the committee to refine reporting or remove the 2 percent sales tax on transfers; a proposed substitute briefed to the committee would eliminate the pooling tax, limiting the levied taxes to 2 percent on transfers and 10 percent on banking.

Committee staff noted reporting requirements (manufacturers and Ecology must report prices and transactions by Oct. 31 each year), and that certain unaggregated price information reported to the Department of Revenue would be treated as exempt from public disclosure as proprietary.

The committee suspended the hearing on HB 2,077 after testimony and returned later to open other business. No committee vote on final passage was recorded during the hearing.

The transcript conveys substantive debate over revenue, market design and program intent but records no final committee action on the bill at the hearing.

","Under House Bill 2,077, an excise tax would apply to the sale and banking of surplus zero-emission-vehicle credits, generating revenue for EV incentives and the state general fund while drawing objections from automakers and some environmental groups.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6268705,"House Finance reviews broad B&O changes including surcharge on largest firms, higher advanced-computing rate",3809,691000,4500000,"/Search/View?dp=1&key=3051157-285d671973cae15e91c49e90c565482d&start=691&end=4500","https://assets.pipeline.soar.com/3051157-285d671973cae15e91c49e90c565482d/thumbnail_691000.jpg","/articles/6268705/Washington/House-Finance-reviews-broad-BO-changes-including-surcharge-on-largest-firms-higher-advanced-computing-rate","https://secure.pipeline.soar.com/6268705-9813bcd2a05f70a8b1fd3736e7452d81/orig.mp4?Expires=1770445424&Signature=R1A4901soAJF175XvD5pwuw6GOSYvPnjyIDf0lpdOhxoAbv1CqUL-BbVRGTJ~a5hhBYs~~0emRgNCCphy-fT-jghJI13frxjgdd-uZnw3LqSO13ZHBH2i5gkO8pSYiA7YwYAFZ58YL66HoOh5GfqSBzrVqSvOlBwDbv6cXwmJHOH7DYYtICq7WoS4PGkiEVpthF5uOhSjG46R4feJeGyUHAisjAIa8BN4Lwcwzk5iZOEziBb9c-DFMX-qrxyoupm1CVWXFqz0F3TeoDR8ZZyipzAX77yBo6JUsHnVU~id9yBSTJBhkdOOd~AWtTlsPp7JCJy7JbqolCW82vPM4VDvg__&Key-Pair-Id=KUT5TJCACFTXG","House Bill 2,081 would alter Washington’s business-and-occupation (B&O) tax structure in several ways: raise the services-and-other-activities rate for large businesses, increase several standard rates toward 0.5 percent, impose a temporary surcharge on very large businesses, raise the advanced-computing surcharge and clarify tax treatment of nonprofits’ investment income following a recent state court decision.

Key provisions briefed to the committee include a change that raises the services-and-other-activities B&O rate for businesses with gross income over $1 million to 2.1 percent beginning Oct. 1, 2025. The bill would raise standard manufacturing, extracting, wholesaling and retailing rates to 0.5 percent beginning Jan. 1, 2027, and the advanced-computing surcharge would increase to 5 percent beginning Jan. 1, 2026, with the annual cap on that surcharge raised from $9 million to $50 million.

Part 2 of the bill would impose an additional 0.5 percent B&O surcharge on businesses with at least $250 million in Washington taxable income, effective Jan. 1, 2026; that surcharge would expire Dec. 31, 2030. The bill lists exemptions from that surcharge (for manufacturing-related income, food and prescription drug sales, farmers and beekeepers, and financial institutions that already pay a financial-institution surcharge). The fiscal-note estimates in committee materials projected hundreds of millions to billions in new revenue across the near biennia: staff cited estimated increases of roughly $697 million in fiscal year 2026 and $1.745 billion in fiscal year 2027, with multi-biennial totals in the billions.

Section 4 of the bill addresses uncertainty created by a recent Washington Supreme Court decision (referred to in committee testimony as the \"Antio\" decision) about whether certain nonprofit investment income is deductible for B&O purposes. Nonprofit advocates said the bill clarifies and restores the exemption for incidental investment income of many 501(c)(3) organizations; some nonprofit witnesses asked the committee to clarify the bill’s effective date and the risk of retroactive audits.

Supporters, including workforce and anti-poverty groups, argued the bill is needed to avoid deep cuts to education, health care and human services. Representative Fitzgibbon, the prime sponsor for portions of the package discussed in committee, said the changes would help close the state’s budget gap and invest in priorities such as education, health care and long-term care. Public testimony in favor focused on preventing cuts to core state services and investing in workforce programs and infrastructure.

Business groups and industry witnesses raised concerns about the economic effects and technical design. Retail groups asked that retailing remain at the lowest available rate and sought an exemption from the surcharge for food and fuel wholesalers; the grocery and hospitality sectors flagged disproportionate effects on essential goods, contests of chance operators and small businesses. The banking industry asked that the financial-institution surcharge not be increased from the current 1.2 percent; banking witnesses warned that piling on taxes could jeopardize capital availability and community-bank competitiveness.

Several industry witnesses — including advanced computing and tech-sector advocates — warned that a higher advanced-computing surcharge and an increased rate burden could push jobs or investment out of state. Health-sector representatives asked that independent health care providers be exempted from proposed rate increases, saying providers do not set billed prices and higher B&O taxes could reduce access to care.

Nonprofit and arts advocates asked the committee to preserve the clarification for nonprofits’ investment-income treatment, while seeking an earlier effective date or assurance the Department of Revenue would not pursue retroactive collections. Committee staff noted the Department of Revenue will need time to update systems; some nonprofit advocates asked for clarity on whether audits could be applied retroactively.

After lengthy testimony from business, labor, education, health and nonprofit stakeholders, the committee adjourned the public hearing on HB 2,081 without a vote and directed staff follow-up on technical questions, including specific definitions and the list of Section 177 states referenced earlier in the ZEV discussion.

","House Bill 2,081 would change multiple Business & Occupation (B&O) tax rates and impose a time-limited surcharge on the largest Washington businesses, raise the advanced-computing surcharge and clarify nonprofit investment-income treatment after a state court ruling. Supporters said the bill raises revenue for education and health care; business, ","actionData","errors"]

Article not found

Committee hears HB 2084 to repeal tax preferences for bullion, change self-storage taxation, and remove pharmacy warehousing rate

House Finance hears proposal to tax surplus ZEV credits, divide revenue for EV incentives and state funds

House Finance reviews broad B&O changes including surcharge on largest firms, higher advanced-computing rate