ESHB 2081 — Modifying business and occupation tax surcharges, rates, and the advanced computing surcharge cap, clarifying the business and occupation tax deduction for certain investments, and creating a temporary business and occupation tax surcharge on large companies.
Signed into law — Chapter 420, Laws of 2025
- Sponsor
- Fitzgibbon
- Introduced
- April 19, 2025
- Status
- C 420 L 25
- Last action
- Effective date 7/27/2025*. (May 20, 2025)
What this bill does
Increases the business and occupation (B&O) tax rate for manufacturing, retailing and wholesaling to 0.5 percent beginning January 1, 2027. Increases the B&O tax rate for multiple rate categories beginning January 1, 2027. Increases the B&O tax rate for services and other activities for businesses with gross receipts over $1 million beginning October 1, 2025. Imposes a 0.5 percent B&O tax surcharge on taxpayers with Washington taxable income over $250 million from January 1, 2026 through December 30, 2030. Increase the B&O surcharge on financial institutions to 1.5 percent beginning October 1, 2025. Increases the B&O advanced computing surcharge to 5 percent beginning January 1, 2026. Clarifies the B&O tax deduction for investment income.
From the Washington State Legislature's nonpartisan staff bill analysis. Read the full analysis ↗
Floor votes
- House — 1331 Caldier Pg 9 Ln 16 · April 21, 202545 yea · 53 nay
- House — 1333 Waters Pg 12 Ln 7 · April 21, 202545 yea · 53 nay
- House — 1336 Griffey Pg 12 Ln 30 · April 21, 202545 yea · 53 nay
- House — 1334 Manjarrez Pg 21 Ln 40 · April 21, 202546 yea · 52 nay
- House — 1332 Connors Pg 31 Ln 8 · April 21, 202545 yea · 53 nay
- House — 1349 Dent Pg 31 Ln 25 · April 22, 202545 yea · 53 nay
- House — 1330 Abell Pg 41 Ln 39 · April 22, 202545 yea · 53 nay
- House — Motion to Place Measure on 3rd Reading & Final Passage · April 22, 202559 yea · 39 nay
- House — 3rd Reading & Final Passage · April 22, 202550 yea · 48 nay
- Senate — 485 Muzzall Pg 8 Ln 34 · April 26, 202519 yea · 29 nay
- Senate — 481 Christian Pg 30 Ln 28 · April 26, 202519 yea · 29 nay
- Senate — 502 MacEwen Pg 30 Ln 28 · April 26, 202519 yea · 29 nay
- Senate — 477 Short Pg 31 Ln 32 · April 26, 202519 yea · 29 nay
- Senate — 489 Wagoner Pg 31 Ln 32 · April 26, 202520 yea · 28 nay
- Senate — 483 Muzzall Pg 32 Ln 3 · April 26, 202521 yea · 27 nay
- Senate — 487 Warnick Pg 32 Ln 3 · April 26, 202520 yea · 28 nay
- Senate — 486 Braun Pg 41 Ln 32 · April 26, 202521 yea · 27 nay
- Senate — 3rd Reading & Final Passage · April 26, 202526 yea · 22 nay
Track ESHB 2081 on OlympiaTrack
A free account adds a plain-English AI summary, the full hearing and amendment record, who testified, and roll calls by member. Plus email alerts when this bill moves.
Create a free accountOther bills sponsored by Fitzgibbon
- 2SHB 1409 — Concerning the clean fuels program.
- 2SHB 1975 — Amending the climate commitment act by adjusting auction price containment mechanisms and ceiling prices, addressing the department of ecology's authority to amend rules to facilitate linkage with other jurisdictions, and providing for market dynamic analysis.
- ESHB 2061 — Regarding concession fees by duty-free sales enterprises.
- SHB 2077 — Establishing a tax on certain business activities related to surpluses generated under the zero-emission vehicle program.
- SHB 2123 — Concerning foreign national participation in Washington state elections.
All 2025-26 Washington State bills →
Source: the Washington State Legislature. OlympiaTrack is an independent bill-tracking service and is not affiliated with the Legislature. View on leg.wa.gov ↗