[{"_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",6263582,"mediaKeyId","3103452-8c160ef687aeb0d571fb0d8e4dc76686","parentId",3103452,"title","Major business tax changes advance in Ways & Means hearing; employers urge targeted exemptions","audioSeconds",1956,"startMs",10496000,"endMs",12452000,"viewUrl","/Search/View?dp=1&key=3103452-8c160ef687aeb0d571fb0d8e4dc76686&start=10496&end=12452","thumbnailUrl","https://assets.pipeline.soar.com/3103452-8c160ef687aeb0d571fb0d8e4dc76686/thumbnail_10496000.jpg","articleUrl","/articles/6263582/Washington/Major-business-tax-changes-advance-in-Ways-Means-hearing-employers-urge-targeted-exemptions","mediaUrl","https://secure.pipeline.soar.com/6263582-ac7b6009613ae76e30ddd5602a4a7a2f/orig.mp4?Expires=1770975835&Signature=VUTnutv8z11XXcM0g9bxQwvxpJdPKzlLAIF8nDa0rHIHlDdp6NHVwdx1Abe9TQ6~2QMhMwjZmcl~HG1J7hMTUppWf0US3in27xRLHYI0zPEPXR0GrTVT8w-pRoBehGDtwMfb5HEmIZkOP0XsClmARCLSX8oE5207RqoZZDzTdBp~-1KoG7DJvDsk20To6HRrUChnCUWHJEjdho~Kvffam8CyRpaMDzAsncHoa12TsLSoJD7u77knU7Nnp9DkXMkuwXYIWq~Uwkn6zPIlg4GTi7O966STK1QBc1fvYSugv5C2EuZnH7CUjPUdSUOgRSHoZ9qfu~f7YkCgfxVWOzCV8Q__&Key-Pair-Id=KUT5TJCACFTXG","author","Senate Ways & Means","date","2025-04-23T00:00:00Z","article","The Ways & Means Committee held an extended hearing April 23 on substitute House Bill 2,081, a broad revenue package that would raise business and occupation (B&O) rates, add temporary surcharges on very large taxpayers, and increase an advanced computing surcharge tied to workforce investments.

Committee staff summarized the bill as a multi‑part package that raises the base B&O rates for retail, wholesaling and manufacturing (to 0.5%) and increases the rate for the services classification for larger firms. The engrossed substitute includes an additional 0.5 percent surcharge on taxpayers with Washington taxable income above a large threshold (the bill as presented applies the surcharge to income above $250 million, then is set to expire after the near term) and raises the advanced computing surcharge to 7.5 percent with a higher annual cap. The bill contains a suite of exemptions and clarifications for certain activities and for tax administration.

Supporters of the revenue package — including unions, caregiving and health‑care advocates, education groups and some local government representatives — described services and programs they said depend on new revenue. Treasurer Mike MacKley said the bill would “make sure our most profitable corporations give back to the communities that make them so profitable.” Advocates for education and workforce training urged the committee to adopt provisions that raise revenue for higher education seats and skills programs.

Opponents — including the Association of Washington Business, the Washington Roundtable, Washington State Hospital Association, Washington Bankers Association and multiple trade and small‑business groups — warned the magnitude of the increases would either be passed to consumers, reduce hiring and investment, or force consolidation. Specific requests from the hearings included:

- Exempting wholesalers of food and the pharmaceutical wholesale supply chain from the new surcharge to avoid driving up food and drug costs, a request urged by the hospitality, grocery and pharmaceutical distribution witnesses.
- Carving out small businesses or indexing a threshold (for example by exempting firms below $5 million in prior‑year receipts) so that local contractors, healthcare practices and small service firms would not face a sudden tax hike.
- Removing or limiting the surcharge on hospitals and the financial services sector; the Washington State Hospital Association asked for an exemption after the first biennium because hospitals are incurring other cuts in this budget cycle.

Industry witnesses and local small business associations said the bill’s B&O increases would hit businesses that cannot immediately adjust prices or that operate on thin margins (for example, contractors, independent pharmacies and small grocery stores). The Department of Revenue was directed in the bill text to work with a taxpayer advisory group on administrative simplifications and to consider statutory and rule changes to ease compliance.

Supporters framed the package as a progressive step to restore revenue from highly profitable entities and to fund services that have been cut in recent years; opponents characterized it as a substantial tax increase that would be felt across the economy. No final committee vote occurred at the hearing; numerous stakeholders asked for amendments and for more targeted exemptions to protect small businesses and essential supply chains.","mediaType","Video","parentTitle","Senate Ways & Means - 4/23/2025 1:30 PM","oneSentenceSummary","Substitute House Bill 2,081, a broad revenue bill discussed April 23 in the Ways & Means Committee, would raise base B&O tax rates, add a temporary surcharge on very large taxpayers and increase the advanced computing surcharge; business groups pressed for exemptions and thresholds to protect small firms, food wholesalers and health providers.","taxTitle","Ways & Means, Senate, Legislative Sessions, Washington","taxId",20513,"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},6263592,"Committee hears K-12 funding bill that shifts monthly apportionment and reduces LEA counts for some online students",1601,3150000,4751000,"/Search/View?dp=1&key=3103452-8c160ef687aeb0d571fb0d8e4dc76686&start=3150&end=4751","https://assets.pipeline.soar.com/3103452-8c160ef687aeb0d571fb0d8e4dc76686/thumbnail_3150000.jpg","/articles/6263592/Washington/Committee-hears-K-12-funding-bill-that-shifts-monthly-apportionment-and-reduces-LEA-counts-for-some-online-students","https://secure.pipeline.soar.com/6263592-d16b65c86e0a1694f507d6d1d773a322/orig.mp4?Expires=1770975835&Signature=L-EXKAMAEISsDmjNim8Vcpbwi-G0zsXWoMRb6OfydvWHw8QjYummC8oRmWK7C-CX76V5vp7l7sL6IO-2o5JttVOnclUAOazDmv~MX9BkYfYhSNZKy4Wnc1c9y4tHa5vt7nKhE22sUJWFfEvYQIawkMjwzy7GrtAYthPCrsZYEHxK8du~iyun2h8oVmBL7H2q69NHrEOUA9UMoPDSKLl-3q2NIRMj7wuSS7k799iFarExJ5agy7VQnd1NgeFX4W83y1~28rhPbBSy4Au-MY2TIP9vk-NXYT2eGKtaSkxKLVeJespCrpRnm2blwBhFYafDbxkLdR4yrZ440o5-8vTang__&Key-Pair-Id=KUT5TJCACFTXG","The Ways & Means Committee held a public hearing April 23 on House Bill 2,050, which would change the monthly apportionment schedule for K‑12 funding and alter how local effort assistance (LEA) is calculated for districts with high enrollments in alternative learning experience (ALE) programs.

Kayla Hammer, staff to the committee, told members “the bill before you is House Bill 2,050 relating to K‑twelve savings and efficiencies.” She summarized two parts: a shift in the monthly apportionment schedule across two school years and a rule reducing the student count used to calculate LEA when a district’s ALE enrollment exceeds 33 percent of average annual full‑time equivalent students.

The apportionment change reduces the February–April monthly proportions and increases the amount paid in August for the 2026 and 2027 school years, Hammer said. On LEA, she explained that if a district has more than 33 percent of its AAFTE enrolled in ALE courses, the district’s LEA‑eligible enrollment would be reduced by the number of ALE students above the 33 percent threshold. “If a school district has a total enrollment of a hundred AAFTE students and 50 of those students are enrolled in ALE, the total enrollment would be reduced to 83 students for the purposes of calculating LEA,” Hammer said.

Speakers from the superintendent’s office and districts described cash‑flow and program concerns. Tyler Munch, testifying on behalf of the state superintendent of public instruction, said the apportionment shift “disrupts district’s ability to plan and operate” and warned districts with low fund balances could be forced to borrow to meet payroll. He asked for flexibility so OSPI could determine a payment schedule if the change is adopted.

Valley School District Superintendent Mandy Raine said her district operates an in‑house ALE partnership that serves students with medical needs, severe behavioral issues or other barriers to on‑site attendance and relies on LEA money to provide interventions. “The 33% you’re considering in this bill, we stand to lose approximately $300,000,” Raine said, adding the district could face layoffs if funding is reduced.

Other district leaders and associations — including the Washington Education Association, the South Sound Superintendents and the Washington State PTA — urged caution or opposition. Testimony repeatedly urged either removal of the apportionment shift or, if the change is kept, additional short‑term funding and flexibility so districts do not have to borrow to cover payroll in fragile months.

Hammer referenced a fiscal note and summarized OSPI’s estimate that the bill produces general fund savings mostly driven by the LEA change, with an amount presented to the committee during the hearing. She also noted the apportionment timing change was estimated to net to zero over four years.

No final committee action was recorded at the hearing. The committee first suspended the five‑day notice rule to consider the bills on the agenda; that motion was moved, seconded and approved without opposition before the public testimony began.","The Ways & Means Committee held a public hearing April 23 on House Bill 2,050, which would change the monthly apportionment schedule for K‑12 state funding and reduce the student count used to calculate local effort assistance (LEA) for districts with large alternative learning experience enrollments.",{"_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},6263587,"Testimony presses committee to keep BECCA funding as bill would shift truancy petition timeline",781,791000,1572000,"/Search/View?dp=1&key=3103452-8c160ef687aeb0d571fb0d8e4dc76686&start=791&end=1572","https://assets.pipeline.soar.com/3103452-8c160ef687aeb0d571fb0d8e4dc76686/thumbnail_791000.jpg","/articles/6263587/Washington/Testimony-presses-committee-to-keep-BECCA-funding-as-bill-would-shift-truancy-petition-timeline","https://secure.pipeline.soar.com/6263587-39609b5f68e6b3fde92b9eafb794bc35/orig.mp4?Expires=1770975835&Signature=dp5PZcsqCMOwpcMc8vMYFcJyStH2El-TZH~sJM8BDyOf62lqaVHTBGwo6qDLwQvZGniu3w~WwTr8vvsVKFl4BS7YYt6Rc5D9fWDYYRMlRvEYWVfqsEqnAw-47bbfefQYvpQzuMCdfFGsCPU8F7jgoO9urlNAWVYXLTG0Cu7WQw38UdasGBjnIV7-kj89D0kGjXsgusTWBYkAXvmkzuM0xwgyrpWWDB3cHm4I4k8Uwsqr1T99ZjvVHG-YPze8uB-5Xx1gDhMZ5weaMhw9I0qGIvuktBOfJ8ahX3opcENvrs~HHH2yMTK~pAMWW0hUQw4ermd5LMSpM8-NarJLboWdCQ__&Key-Pair-Id=KUT5TJCACFTXG","The Ways & Means Committee took testimony April 23 on House Bill 2,044, which would alter the state’s truancy process by changing when schools must file truancy petitions and by making community engagement boards a required option earlier in the process. Testimony focused heavily on funding for BECCA‑related supports and whether the bill would effectively defund local early‑intervention programs.

Kayla Hammer, staff to the committee, summarized the bill: it would require a school district to either enter into an attendance agreement or refer the child to a community engagement board after a student’s fifth unexcused absence within any month, and would require a truancy petition to be filed no later than the 15th unexcused absence in the school year if the district or board failed to enter an agreement within 20 days or the family failed to comply with the attendance agreement.

Speakers representing the superintendent of public instruction, juvenile court administrators, superior court judges and school districts testified mainly in opposition. Misha Chernisky (Office of the Superintendent of Public Instruction) said the bill “asks the whole system, especially school districts, to do a lot more” without enough funding; staff and courts flagged that much BECCA funding is locally distributed and that the House budget had removed grants tied to BECCA activities.

George Moya and Corey Stevens, juvenile court administrators, said the BECCA triage model focuses on early, community‑based intervention and not punishment, and they urged the committee to “not pass this bill out of committee and leave backup funding in the budget.” Superior court judges and administrators described how BECCA funding supports trauma‑informed case management, referrals to behavioral health and substance‑use treatment, and coordination with community partners.

Several parents, juvenile court administrators and school engagement specialists testified with personal examples linking BECCA procedures to concrete interventions. A parent who said her child received critical behavioral health supports through the truancy referral process asked lawmakers to “fully fund BECCA programming.” A Chelan County superior court judge said making court involvement permissive rather than mandatory would allow the Legislature to remove funding and “leave a huge gap in support for our most vulnerable youth and families.”

Committee staff and witnesses noted a House budget change that removed funding for certain BECCA grants, which testifiers said left districts and courts with the expectation they would have to provide more services without an identified funding source. No committee vote on the bill occurred during the hearing.

","House Bill 2,044 would change the timeline and process for filing truancy petitions and expand use of community engagement boards; juvenile court administrators, judges, school officials and advocates told the committee they fear the bill will remove or reduce BECCA‑related funding and weaken early‑intervention safeguards for vulnerable youth.","actionData","errors"]

Article not found

Major business tax changes advance in Ways & Means hearing; employers urge targeted exemptions

Committee hears K-12 funding bill that shifts monthly apportionment and reduces LEA counts for some online students

Testimony presses committee to keep BECCA funding as bill would shift truancy petition timeline