Washington legislators debate House Bill 2084 targeting self storage tax disparities

House Bill 2,084, currently under scrutiny in Washington, has sparked significant debate over its proposed taxation measures, particularly concerning self-storage facilities and precious metals. The bill has drawn criticism for allegedly violating constitutional principles by imposing a business and occupation (B&O) tax solely on self-storage properties while exempting other real estate rental types, such as warehouses and apartments. Critics argue that this selective targeting undermines the Uniformity Clause of the Washington Constitution, which mandates that property taxes must be uniformly applied across all real estate classes.

During the House Finance meeting on April 18, 2025, stakeholders voiced their concerns about the implications of this tax structure. Patrick Heller, representing the National Coin and Bullion Association, opposed a specific section of the bill that would repeal the sales tax exemption for precious metals and monetized bullion. Heller warned that such a repeal could lead to a decline in overall sales tax collections, potentially resulting in job losses and reduced economic activity within the state. He highlighted that customers might turn to states without such taxes, further diminishing Washington's tax revenue.

Brian Garrity, owner of Northgate Rare Coin in Seattle, echoed these sentiments, stating that the proposed tax could drive businesses out of Washington, pushing customers to seek bullion purchases in neighboring states with more favorable tax conditions. He emphasized the negative impact on local investors and employees, suggesting that the tax could hinder their ability to save and invest.

The discussions during the meeting underscore the potential economic ramifications of House Bill 2,084, as stakeholders call for a reconsideration of its provisions to ensure fair and equitable taxation across all property types. As the legislative process continues, the outcomes of these discussions will be crucial in shaping the future of taxation in Washington and its impact on local businesses and communities.