Committee hears proposal for 0.4% B&O surcharge on social media to fund youth behavioral health

Committee staff and the bill’s sponsor outlined House Bill 2038 at a House Finance Committee public hearing, emphasizing an additional business and occupation (B&O) tax on social media platforms and a new youth behavioral health account to fund prevention, telebehavioral health pilots in schools and state coordination of prenatal through age 25 behavioral health work.

Staff briefing: Christina King, committee staff, explained that the bill would add a 0.4 percent surcharge to the B&O tax on businesses operating social media platforms beginning January 1, 2026. The surcharge would apply to gross income taxable under the B&O service and other activities classification and would be in addition to existing B&O taxes. Nonprofit organizations exempt from federal income tax would be excluded.

Sponsor Rep. Lisa Callan…