Washington State Tax Increase Proposals 2026: What Businesses Need to KnowWashington lawmakers are exploring several new ways to increase revenue, with an income tax being just one option. The Washington Research Council’s article “Cataloging the Legislature’s tax increase proposals” compiles many of the tax bills introduced so far this year and notes that many proposals never become law. It categorizes the ideas into six main areas: income and gross receipts, health care, information, social media and data, “sin” taxes, housing, energy and environment, and local funding and local tax authority.
For businesses, the article highlights proposals that could increase labor and operating costs or alter tax rules for specific industries. Examples include a payroll expense tax on wages above a certain threshold for some companies, changes to B&O tax treatment for certain financial activities, and new or expanded assessments linked to Medicaid enrollment or insurance coverage. It also points out taxes targeting data centers and social media platforms, along with potential local tax options that might raise costs in particular cities or counties. The main takeaway for employers is uncertainty: even if only some of these bills move forward, they could impact hiring plans, pricing, and where businesses choose to expand in Washington. Full article: “Cataloging the Legislature’s tax increase proposals” https://researchcouncil.org/cataloging-the-legislatures-tax-increase-proposals/
0 Comments
Thank you to everyone who joined the Tri-Cities Legislative Council for Tri-Cities Day at the Capitol and helped present a unified voice on issues impacting our region’s economy and quality of life. We appreciate all who engaged with legislators, shared priorities, and strengthened connections with state leaders and the business community. Recent bills highlighted in our January 19 Session SpotlightTo learn more about these bills watch the Session Spotlight HereYou can also check out all the bills the Tri-City Regional Chamber is tracking by visiting our Legislative Action and Advocacy Website
Update: Horse Heaven Hills Wind Project — Public Comments Open The Washington State Energy Facility Site Evaluation Council (EFSEC) is now considering Resolution 357, which would accept a mitigation plan for the Horse Heaven Hills Wind and Solar Project in Benton County. Below is a summary of Resolution 357.
This large-scale project — spanning more than 70,000 acres south of the Tri-Cities — has raised serious local concerns about its impact on our views, wildlife, recreation, and community character. Despite years of public input and EFSEC’s own recommendation to reduce the project size, the current proposal moves forward with limited changes and unclear protections for the environment and nearby residents. Now is the time to speak up. Public comments on Resolution 357 are open until October 13, 2025, 11:59 p.m. Submit your comment at: https://comments.efsec.wa.gov You can also email [email protected] Your voice matters—help protect the Tri-Cities landscape and ensure local perspectives are heard. What is Resolution 357? Resolution 357 is a draft resolution issued by EFSEC staff to guide the implementation of the “Spec-5” mitigation measure for the Horse Heaven Wind Project. The public comment period for it runs from September 30 to October 13, 2025. “Spec-5” is a specific mitigation condition embedded in the Site Certification Agreement (and earlier proposals) that relates especially to buffer zones around ferruginous hawk nests, avoidance of sensitive habitat, and restrictions on siting of turbines, solar arrays, and battery systems in areas of high environmental risk. What does Spec-5 (and thus Resolution 357) address? Here are the primary elements Spec-5 and Resolution 357 are supposed to control:
Why it matters & what’s uncertain
Be Part of the Conversation Shaping Our Region’s FutureMark your calendar for Tuesday, October 14 from 5:30 to 7:00 PM, as the Tri-City Regional Chamber of Commerce host a Candidate Meet & Greet at the Tri-Cities Business & Visitor Center (7130 W. Grandridge Blvd., Kennewick). This event brings together candidates vying for the cities of Kennewick, Pasco, Richland, West Richland, and the Ports of Benton and Kennewick in a unique, open-floor forum. It’s your chance to hear their visions, ask your pressing questions, and engage in a meaningful dialogue about where our region is headed into 2026 and beyond.
The Tri-City Regional Chamber is more than a convener—it is the voice of business, promoting regional prosperity through advocacy, leadership, networking, and innovative business programming. With nearly 900 member businesses, the Chamber strives to serve as a catalyst, convener, and champion for economic vitality across Benton and Franklin Counties. Bringing candidates to the table is part of fulfilling that mission—ensuring decision-makers hear from the business community, local stakeholders, and committed residents alike. Attendees can expect a casual but substantive format. There will be no formal program, just chance for your questions and conversations with the candidates. Whether you lead a local business, represent a nonprofit, or simply care about the direction of our cities, your voice and your questions matter. By joining us, you become part of a regional conversation. Don’t let this moment pass. Come, engage, and help shape the next chapter in the Tri-Cities. Reserve your spot now, and we look forward to seeing you on October 14. Guiding Principle: Rules Should Help Businesses Grow and InnovateStrong communities are built on strong businesses. Therefore, the Tri-City Regional Chamber follows a simple guiding principle: government policies and regulations should promote responsible business operations and encourage innovation and entrepreneurship. When a rule blocks those goals or harms local employers, we push for it to be revised or repealed. This principle keeps our focus on practical outcomes for the people who live and work in Kennewick, Pasco, Richland, and West Richland.
For local employers, clear and fair rules imply stability and confidence. When permits are predictable, fees are right-sized, and timelines are reasonable, small shops, farms, and startups can plan, hire, and invest in their businesses. Innovation is also important. Incentives that support new products, technologies, and business models help our region create new jobs and diversify the economy. This is how the Tri-Cities remains competitive and creates opportunities for students, veterans, and entrepreneurs. Responsible operation is part of this balance. Good policy protects workers, customers, and the environment while allowing businesses to thrive. In practice, this looks like streamlined licensing, simple reporting, and modern tools that make compliance easier. It also includes smart incentives, such as support for apprenticeships, research partnerships, or pilot projects that allow companies to test new ideas without jumping through endless hoops. The Chamber uses this principle as a filter when reviewing proposals from city halls, Olympia, and state agencies. We ask: Does this policy make it easier for responsible businesses to operate? Does it lower needless barriers for startups? Does it protect people while keeping costs low? We also champion policies that open doors, such as faster permitting, broadband expansion for commerce, and programs that help entrepreneurs launch and scale their businesses. Our goal is simple: a healthy and innovative business climate that lifts the entire region. By standing up for smart rules and pushing back on harmful ones, the Chamber helps keep the Tri-Cities a great place to start and grow businesses. If a policy affects your ability to operate, hire, or innovate, please tell us. Your feedback guides our advocacy and makes this principle a reality. Investing in Education and Workforce Readiness: Key Takeaways from the Tri-Cities Advocacy RoundtableAt our most recent Regional Advocacy Roundtable, local education leaders and state legislators came together to discuss key issues shaping the future of education and workforce development in Washington. Representative April Connors opened the discussion with an overview of House Bills 1414 and 1722, both aimed at expanding career and technical education (CTE) opportunities for high school students. These bills focus on removing barriers for students in skill centers, particularly in fields like healthcare and firefighting, by adjusting labor laws to allow earlier testing and employment. Rep Connors highlighted these legislative wins as key outcomes of the session, noting the collaborative efforts required to overcome policy hurdles. Paul Randall, Director of Tri-Tech Skills Center in Kennewick, shared updates on the facility’s expansion beyond its original 66,000 square feet and the addition of new training programs aligned with local workforce needs. His remarks underscored Tri-Tech’s vital role in connecting education with industry in the Tri-Cities. The discussion also highlights the broader role of skill centers in Washington State, emphasizing career pathways for high school juniors and seniors, ongoing modernization efforts to upgrade facilities and equipment, and partnerships with institutions such as WSU Tri-Cities for programs such as nursing.
Representative Sklyer Rude closed the discussion by sharing insights from his work as Ranking Member of the House Education Committee and a member of the Post-Secondary Education and Workforce Committee. He described the careful evaluation process that his caucus uses when reviewing education bills, especially those with financial implications. Rep. Rude also touched on a proposed bill to limit cell phone use in classrooms, and his financial literacy bill which failed this session but is expected to return. He voiced support for the State Board of Education’s direction on key policies but expressed strong concerns about the recently passed Parents’ Bill of Rights, criticizing it for constitutional issues and the inclusion of unrelated language around gender ideology and discrimination. The Regional Advocacy Roundtable on education offered a comprehensive look at how state policy, local leadership, and education institutions are working together to strengthen career pathways and improve student outcomes across the Tri-Cities. From expanding access to career and technical education through legislative wins like House Bills 1414, 1722, and 1273, to investing in facilities like Tri-Tech and protecting higher education funding at WSU Tri-Cities, the discussion highlighted a shared commitment to preparing students for real-world opportunities. Lawmakers and educators alike acknowledged both progress and ongoing challenges, particularly funding stability, policy implementation, and ensuring that legislation supports all students equally. The session underscored the importance of continued collaboration between schools, state leaders, and the business community in creating a future-ready workforce and a responsive education system in our region. The September Regional Advocacy Roundtable is scheduled for September 2nd at 8 am at the Tri-City Business and Visitor Center and will be about the 2025 Washington State Budget. You can sign up here.
Chamber Guiding Principle Overview- HealthcareThe Tri-City Regional Chamber of Commerce uses its guiding principles to shape policy positions that support a strong economy and a healthy business environment. These principles help the Chamber stay focused, consistent, and aligned with the needs of local businesses when weighing in on local, state, and federal issues.
Here is an in depth look at the Chambers Healthcare guiding principle. Access to quality and affordable healthcare is a fundamental need for individuals, families, and businesses. For employers, especially small- and mid-sized businesses, rising healthcare costs and complex mandates can significantly impact their ability to hire, retain, and support a healthy workforce. This is why the Tri-City Regional Chamber of Commerce includes healthcare as a core component of our Public Policy Guiding Principles. Our position supports healthcare policies that improve access, reduce employer costs, and eliminate unfunded mandates and excessive regulations on businesses. In the Tri-Cities region, a healthy workforce is a productive workforce. When employees have access to preventive care, mental health services, and affordable prescriptions, they reduce their absenteeism and improve their job satisfaction. However, when businesses are burdened with complex and costly directives, especially without state or federal funding support, they create administrative challenges and financial stress. This is particularly true for small businesses that lack resources to absorb sudden changes in coverage requirements or reporting standards. The Chamber uses this guiding principle to carefully review proposed healthcare legislation or regulatory changes. We ask, Will this policy improve access for employees without shifting additional costs to employers? Does it streamline compliance or add unnecessary bureaucracy? Does it empower local businesses to offer competitive benefits or make it harder to do so? These questions help us assess whether a proposal aligns with our region’s economic strengths and the real-world needs of Tri-City businesses. In summary, the Chamber’s healthcare policy principle supports a thoughtful, balanced approach to public policy, which prioritizes access, affordability, and simplicity. By using this lens, we can ensure that healthcare policy works for both employers and employees, helping Tri-Cities remain a competitive and compassionate place to live, work, and do business. Your Guide to the 2025 Vote for Business: Where Local Candidates Stand on Business IssuesIn each election cycle, voters are faced with important decisions that shape the future of our communities. For those who care about the health and success of our local economy, having the right information is critical. That’s why the Tri-City Regional Chamber of Commerce publishes the Vote for Business Guide — the only voter guide in the Tri-Cities that focuses specifically on business issues.
The 2025 edition of the Vote for Business Guide is now available, featuring responses from candidates running for local office in Kennewick, Pasco, Richland, and West Richland. This year’s guide highlights how candidates view the role of their office in supporting small businesses, encouraging job growth, and removing barriers to economic development. Each candidate was asked to respond to four key questions reflecting real challenges and opportunities for businesses in the region. The Chamber does not endorse candidates. Instead, this guide serves as an informational tool to help voters better understand where candidates stand on business-related topics. By focusing on business policy and economic development, the Vote for Business Guide provides clarity on which candidates are ready to tackle the issues that matter most to local employers, employees, and entrepreneurs. Whether you are a business owner, employee, or simply a voter who cares about economic prosperity, we encourage you to explore this year’s guide and become an informed participant in the upcoming election. Your vote matters, and so does the future of our business community. You can read the 2025 Vote for Business Guide here. How Public Policy Impacts Energy Costs in Washington State Join the Tri-City Regional Chamber of Commerce for an important Regional Advocacy Roundtable on Tuesday, July 1, 2025, at 8:00 a.m. at the Tri-City Business and Visitor Center. This event has passed. This timely discussion, titled "Behind the Bill – How Policy Shapes Our Energy Costs," will explore how recent legislation and public policy decisions influence the prices of electricity and fuel in Washington State. Business leaders, policymakers, and energy experts will break down what’s driving costs and what it means for local employers and residents. How Public Policy Impacts Energy Costs in Washington State
The cost of energy in Washington, whether it is the price of gas at the pump or your monthly electricity bill, is shaped by more than just supply and demand. Public policy decisions made at the state and local levels play a major role in how much we pay for energy. Taxes, fees, climate laws, and utility rules all impact the final cost to consumers. While these policies aim to protect the environment and improve infrastructure, they also add to the monthly energy expenditure of individuals and businesses. Gas Taxes and Fuel Policies Washington has one of the highest gas taxes in the country. As of now, drivers pay 49.4 cents per gallon in state tax, plus 18.4 cents in federal tax, bringing the total to nearly 68 cents per gallon. In addition, there are smaller fees, such as underground storage tank fees and local fuel taxes, in some areas. These taxes help fund transportation projects such as road repairs, bridge upgrades, and highway maintenance, but they are directly passed along to consumers. The Clean Fuel Standard, which began in 2023, is another policy that affects gas prices. This pushes fuel companies to use cleaner fuels by requiring them to lower the carbon content of their products or buy clean energy credits. It is estimated that this program has only added approximately one to four cents per gallon, but these costs may increase in the future. The Climate Commitment Act (CCA) The Climate Commitment Act is Washington’s “cap-and-invest” program. It sets a limit on the amount of carbon pollution that large companies can emit. Businesses that exceed this limit must buy carbon credits at state-run auctions. These extra costs are passed on to customers. For gasoline, this has raised prices by an estimated 9–25 cents per gallon. Electric utilities and natural gas providers are also included in the CCA. They face higher costs for using fossil fuels, which can lead to higher electricity bills. The Clean Energy Transformation Act (CETA) The Clean Energy Transformation Act passed in 2019 requires utilities in Washington to move away from fossil fuels. They must stop using coal by 2025, become carbon-neutral by 2030, and provide 100% clean electricity by 2045. To meet these goals, utilities are investing in wind, solar, and battery storage, and upgrading the electric grid. These investments are expensive, and utilities recover these costs through customer rates. This means that electricity bills will increase, particularly in the short term. Some utilities also add small charges, such as a $1.77 monthly fee in Skamania County, to help cover clean energy programs. Over time, as the cost of renewable energy drops and efficiency improves, the hope is that clean energy will become more affordable. Utility Taxes and Local Charges Many cities and counties in Washington also charge utility taxes or franchise fees on electricity and natural gas. These fees are often a percentage of your bill, usually between 3% and 9%, and are added directly to your monthly charges. In areas served by public utility districts (PUDs), there may also be special privilege taxes which the utility may pass along to customers. Additionally, policies that promote rooftop solar or electric vehicle infrastructure can lead to higher system costs. These are sometimes shared across all ratepayers, depending on how the utility sets its rates. From the gas pump to the power outlet, public policy affects how much we all pay for energy in Washington. State gas taxes, the Climate Commitment Act, the Clean Energy Transformation Act, and local utility fees all play a role. While the goal of these policies is to create a cleaner and more efficient future, they do have real impacts on current prices. Understanding how these programs work can help residents and businesses make smart decisions regarding their energy use and prepare for future changes. |
Categories
All
Archives
March 2026
|
RSS Feed