Congratulations to Atomic Escape Rooms on the ribbon cutting and grand opening for their new Rock Lake Island expansion! Check out their space at 1333 Tapteal Dr., Ste. 102 in Richland - but be careful, you might run into Bigfoot!

On May 15, Governor Bob Ferguson visited the Tri-Cities for a special bill signing ceremony, recognizing the work of local legislators during the 2025 Washington State legislative session. Held in the heart of the Tri-Cities region, the event celebrated the successful passage of bills championed by Eastern Washington lawmakers. At the ceremony, Governor Ferguson signed 11 bills into law, highlighting the impact of regional leadership on statewide policies.

The bills signed in the Tri-Cities covered a range of topics, from agriculture and infrastructure to workforce development and education. While most legislation is typically signed in Olympia, this visit underscores the importance of bringing government closer to the communities it serves. It also offered local residents a chance to witness firsthand how their elected officials are shaping laws that directly affect their region.

In total, Tri-City legislators successfully passed 18 bills into law during the 2025 session. This legislative achievement reflects the growing influence of Eastern Washington voices in Olympia and the commitment of local lawmakers to address regional needs. The remaining bills were signed earlier this year at ceremonies held at the state capitol, continuing the longstanding tradition of recognizing the legislative process at the seat of government.

This event not only highlighted the accomplishments of local lawmakers, but also emphasized the importance of bipartisan collaboration in achieving meaningful results. The governor’s decision to hold a bill signing ceremony in the Tri-Cities sends a clear message: the voices of Eastern Washington are being heard, and their ideas are making a difference across the state.
Tri-Cities can take pride in the active role their delegation plays in shaping state policy. These successes established a strong foundation for future advocacy efforts and legislative progress in the region.

Congratulations to Columbia Basin College on the groundbreaking ceremony for their next student dormitory. The complex will be located at 20th Ave. and Argent, near the northeast corner of campus. Learn more about the project in this article from the Tri-Cities Area Journal of Business.

Congratulations to Personna Employment Solutions on their ribbon cutting ceremony on Thursday, May 15! Visit their new Pasco location at 2211 W. Court St.

The Tri-City Regional Chamber of Commerce has joined a broad coalition of business organizations urging Congress to preserve the federal deduction for state and local business taxes, commonly referred to as the B-SALT deduction. The Chamber is advocating for local businesses, emphasizing that changes to this long-standing tax provision could lead to substantial financial burdens for employers throughout the Tri-Cities and beyond.

The B-SALT deduction allows companies to deduct mandatory state and local taxes as part of their ordinary business expenses. However, recent proposals in Congress suggest placing caps on or eliminating this deduction entirely. If enacted, these changes could generate more than $600 billion in additional taxes over the next decade, affecting a wide range of business entities, including sole proprietors, partnerships, corporations, and commercial property owners.

In partnership with other regional and national business groups, the chamber highlighted that deduction has been a critical component of the federal tax code for decades. This helps ensure that businesses are not taxed twice on the same income and supports broader goals of economic stability and growth.

The coalition's message to lawmakers is clear: eliminating the B-SALT deduction would roll back important progress made through the 2017 Tax Cuts and Jobs Act, which contributed to wage increases, job creation, and expanded investment in local communities. Maintaining deductions is vital for preserving a fair and competitive tax environment that supports economic development and small business sustainability.
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The Tri-City Regional Chamber will continue advocating on behalf of its members to protect policies that promote business growth and reduce unnecessary tax burdens.

You can review the letter the Chamber sent here. 

Washington State’s 2025 legislative session brought major changes to the budget and tax landscape. The Washington Research Council (WRC) has published several insightful articles that break down the implications of these changes for businesses, consumers, and the state’s fiscal future. Below is a summary of each article, with a link for further reading.

1. Budget Cuts Offset by New Spending
While the Washington Legislature made $7.020 billion in cuts to the operating budget over five years, these reductions were largely offset by significant new spending on other programs. The analysis highlights that budget shifts do not necessarily reduce overall government spending but rather reallocate resources to new or expanded initiatives. This reflects a prioritization of funding rather than an actual contraction of government operations, raising questions about the long-term sustainability of the state’s fiscal policies.
Read the full article →

2. Historic Tax Increase and B&O Rate Changes
This Washington Research Council article outlines the scope and impact of the largest tax increase in Washington State’s history, adopted during the 2025 legislative session. The tax package includes substantial increases in Business and Occupation (B&O) tax rates, particularly targeting service industries and high-revenue firms. The Council details how different business sectors will be affected, emphasizing that changes could increase the cost of doing business across the state. This article also raises concerns about the economic impact of these tax hikes on competitiveness and investment in Washington.
Read the full article →

3. Revenue Impacts of B&O Tax Bill
A closer look at the revenue implications of the new B&O tax provisions reveals detailed estimates of the additional revenue the state expects to collect. It breaks down how each provision, including rate increases, surcharges, and new classifications, contributes to the overall projected revenue gain of over $2.7 billion in the first four years. The report emphasizes that a large share of revenue comes from service-related businesses and high-grossing firms, and it raises concerns about potential volatility and economic burden, especially for sectors sensitive to narrow margins.
Read the full article →

​4. Conference Budget Boosts Appropriations and Revenues
The final conference budget report proposes an 8.2% increase in Near General Fund–State (NGFO) appropriations and includes a tax package expected to raise $9.4 billion over four years. The analysis highlights how the budget significantly expands state spending, driven by both increased tax collection and program growth. The Council notes that the budget relies heavily on new taxes and fees, raising concerns about the long-term fiscal outlook and sustainability of this elevated spending trajectory.
Read the full article →

5. Impact of Higher B&O Taxes on Consumers
This article from the Washington Research Council explains that while a Business and Occupation (B&O) tax is levied on businesses, the economic burden often shifts to consumers through higher prices. The analysis emphasizes that businesses typically pass tax increases along the supply chain, especially in competitive markets where margins are tight. The Council warns that the recent B&O tax hikes adopted by the legislature are likely to raise the cost of goods and services for Washington residents, disproportionately affecting low- and middle-income households.
Read the full article →

Each article provides a valuable context for understanding how these fiscal decisions may ripple through Washington’s economy. Whether you’re a policymaker, business owner, or just a curious resident, staying informed on these developments is crucial.

​Washington State’s 2025 legislative session brought major changes to housing law, with a focus on affordability, tenant protection, and housing development. These new laws are intended to address the state’s growing housing crisis, but also bring about significant adjustments for property owners. Whether you rent out a single unit or manage a portfolio of properties, understanding these laws is key to adapting your operations and staying compliant. 

House Bill 1217: Rent Control Statewide

House Bill 1217 is one of the most talked about measures in this session. It establishes statewide rent stabilization rules, limiting how much landlords can raise rent each year. Specifically, annual rent increases are capped at 7% plus inflation or at 10%, whichever is lower. This law marks the first time Washington has implemented a broad rent control policy, signaling a shift in how the state balances market forces and tenant protection. 

For renters, this implies more predictable housing costs and a lower risk of sudden displacement. However, for landlords, the cap may impact long-term financial planning, particularly in regions where costs such as property taxes, insurance, and maintenance are rising faster than the allowable rent increases. Owners need to assess how these limits affect revenue models and consider strategies for controlling expenses.

House Bill 1491: Increasing Density Near Transit

Another major policy change came through House Bill 1491, which requires cities to allow higher-density housing near transit corridors. The law mandates upzoning around areas served by frequent public transit, such as light-rail stations and major bus lines. The goal is to create walkable, transit-connected communities while increasing housing supply in areas with strong infrastructure. 

Renters may benefit from more housing options near their jobs, schools, and public services. Property owners located in these areas could see new development opportunities with the ability to build more units than previously allowed. However, participating in such development will likely require familiarity with new permitting processes and compliance with the updated local planning codes.
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House Bill 1096: Easier Lot Splitting for Small-Scale Housing

House Bill 1096 focuses on increasing the housing supply by making it easier for property owners to split large residential lots into smaller parcels. This legislation opens the door for more “missing middle” housing, such as duplexes, triplexes, and accessory dwelling units, especially in traditional single-family neighborhoods. 

This could be a win for renters who are seeking more affordable or flexible living options. For property owners, the law creates opportunities to build and generate income from additional units on existing lots. That said, owners will need to navigate zoning, permitting, and infrastructure requirements, which could vary by jurisdiction and require upfront investment.

House Bill 1177: Housing Support for At-Risk Families

Finally, House Bill 1177 expanded the housing support for families involved in the child welfare system. This enhances funding and eligibility for housing assistance programs aimed at preventing family separation due to homelessness or unsafe housing conditions. The bill ensures that families at risk of entering the child welfare system receive rental assistance and case management support. 

This law provides a vital safety net for renters, particularly vulnerable families. Landlords may see more tenants using state-supported housing programs that can provide more reliable rent payments through vouchers. However, they must also comply with program requirements, including lease terms and property condition standards.

In summary, Washington’s 2025 housing laws reshape the relationship between renters and property owners. The new rules emphasize stability and access for tenants while encouraging denser housing development in the targeted areas. Property owners who remain informed and proactive—whether by adjusting rental strategies, exploring new development potential, or engaging with housing programs—will be best positioned to navigate these changes. As the market continues to evolve, successful landlords will adapt to new expectations while maintaining the long-term value of their properties.

Thank you to everyone who attended Business After Hours at Hampton Inn Richland on Thursday, May 8. We hope everyone made some fantastic new business connections. Our next Business After Hours will be on June 12 from 4 - 6 at Grace Clinic (​800 W Canal Dr, Kennewick, WA 99336).

​At our recent Regional Advocacy Round Table, local law enforcement leaders from the Pasco, Richland, and Kennewick Police Departments shared valuable insights with business owners on how to protect their property, employees, and customers. Public safety continues to be a top concern for our business community, and officers emphasized several practical steps businesses can take to deter crime and support policing efforts.

Lighting is one of the most important and easy-to-implement safety measures. Proper lighting around your business, especially around entrances, exits, and parking areas, can discourage criminal activity and make it easier to spot suspicious behavior. Criminals tend to avoid well-lit areas because they are more likely to be seen.

Surveillance cameras are another effective tool. Not only do cameras deter theft and vandalism, but police can also use video footage to identify suspects and gather evidence. Even basic security camera systems can make a big difference and are becoming more affordable for small businesses.

Another key takeaway always calls 911 when something happens, regardless of how small the issue is. Whether it is vandalism, suspicious behavior, or minor theft, reporting incidents helps law enforcement see where problems occur. Police departments use this information to track patterns and focus resources using a method called “Hotspot Policing,” which targets areas with higher levels of reported crime.

Business owners also learned about their rights when it comes to trespassing. No one has the right to hang out on or use private property without permission. You can ask someone to leave, and if they do not, police can legally remove them. Better yet, most local departments offer a “Pre-Authorized Trespass” form. By signing this, you give police permission to remove trespassers from your property after hours, without needing to call you first.

Finally, several police departments offer free business safety audits. Officers can visit your location, assess your current safety measures, and suggest ways to improve your physical security. These audits help tailor safety strategies to a business’s specific needs and location.

Maintaining the safety of our business community requires teamwork. By taking small but smart steps—and working closely with local law enforcement—we can all help make our cities safer places to live, work, and shop.