WA People
BILL · 2025–26 SESSION · LATEST VERSION ESHB 2081

HB 2081: Business and occupation tax

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.

Summary

  • 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, 2029.
  • Increase the B&O surcharge on financial institutions to 1.5 percent beginning October 1, 2025.
  • Increases the B&O advanced computing surcharge to 7.5 percent and increases the annual cap to $75 million beginning January 1, 2026.

From the Engrossed Substitute House Bill Report (ESHB 2081), written by the Legislature's nonpartisan staff. Read the full report ↗

Enacted Enacted · Chapter 420, Laws of 2025
  1. IntroducedApr 16, 2025
  2. Out of committeeApr 19, 2025
  3. Passed HouseApr 22, 2025
  4. Passed SenateApr 26, 2025
  5. GovernorMay 20, 2025
  6. LawMay 20, 2025
Prime sponsor
Joe Fitzgibbon (D-34)
Introduced
April 16, 2025 in the House
Last action
May 20, 2025
Session law
Chapter 420, Laws of 2025
Companion bill
SB 5815
Budget
Has a fiscal note
Versions
HB 2081, SHB 2081, ESHB 2081

AN ACT Relating to funding public schools, including higher education, health care, social services, and other programs and services to benefit Washingtonians by 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 with annual revenues with more than $250,000,000;

Sponsors

Prime sponsor: Joe Fitzgibbon (D-34)

7 co-sponsors (7 Democrats, 0 Republicans)

Strom Peterson D-21Gerry Pollet D-46Lisa Parshley D-22Shaun Scott D-43Julia Reed D-36Liz Berry D-36Nicole Macri D-43

Votes

House · 3rd Reading & Final Passage

Passed April 22, 2025
Version voted on: ESHB 2081
50 Yea 48 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat50900
Republican03900
How each member voted

Yea (50)

Nay (48)

Permalink to this vote

Senate · 3rd Reading & Final Passage

Passed April 26, 2025
Version voted on: ESHB 2081
26 Yea 22 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat26300
Republican01900
How each member voted
Permalink to this vote
16 other recorded votes (amendments, procedural motions)

House · Amendment 1331 by Caldier (page 9, line 16)

April 21, 2025
Version voted on: ESHB 2081
45 Yea 53 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat65300
Republican39000
How each member voted

Nay (53)

Permalink to this vote

House · Amendment 1333 by Waters (page 12, line 7)

April 21, 2025
Version voted on: ESHB 2081
45 Yea 53 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat65300
Republican39000
How each member voted

Nay (53)

Permalink to this vote

House · Amendment 1336 by Griffey (page 12, line 30)

April 21, 2025
Version voted on: ESHB 2081
45 Yea 53 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat65300
Republican39000
How each member voted

Nay (53)

Permalink to this vote

House · Amendment 1334 by Manjarrez (page 21, line 40)

April 21, 2025
Version voted on: ESHB 2081
46 Yea 52 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat75200
Republican39000
How each member voted

Nay (52)

Permalink to this vote

House · Amendment 1332 by Connors (page 31, line 8)

April 21, 2025
Version voted on: ESHB 2081
45 Yea 53 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat65300
Republican39000
How each member voted

Nay (53)

Permalink to this vote

House · Amendment 1349 by Dent (page 31, line 25)

April 22, 2025
Version voted on: ESHB 2081
45 Yea 53 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat65300
Republican39000
How each member voted

Nay (53)

Permalink to this vote

House · Amendment 1330 by Abell (page 41, line 39)

April 22, 2025
Version voted on: ESHB 2081
45 Yea 53 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat65300
Republican39000
How each member voted

Nay (53)

Permalink to this vote

House · Motion to Place Measure on 3rd Reading & Final Passage

April 22, 2025
Version voted on: ESHB 2081
59 Yea 39 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat59000
Republican03900
How each member voted

Yea (59)

Permalink to this vote

Senate · Amendment 485 by Muzzall (page 8, line 34)

April 26, 2025
Version voted on: ESHB 2081
19 Yea 29 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat02900
Republican19000
How each member voted
Permalink to this vote

Senate · Amendment 481 by Christian (page 30, line 28)

April 26, 2025
Version voted on: ESHB 2081
19 Yea 29 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat02900
Republican19000
How each member voted
Permalink to this vote

Senate · Amendment 502 by MacEwen (page 30, line 28)

April 26, 2025
Version voted on: ESHB 2081
19 Yea 29 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat02900
Republican19000
How each member voted
Permalink to this vote

Senate · Amendment 477 by Short (page 31, line 32)

April 26, 2025
Version voted on: ESHB 2081
19 Yea 29 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat02900
Republican19000
How each member voted
Permalink to this vote

Senate · Amendment 489 by Wagoner (page 31, line 32)

April 26, 2025
Version voted on: ESHB 2081
20 Yea 28 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat12800
Republican19000
How each member voted
Permalink to this vote

Senate · Amendment 483 by Muzzall (page 32, line 3)

April 26, 2025
Version voted on: ESHB 2081
21 Yea 27 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat22700
Republican19000
How each member voted
Permalink to this vote

Senate · Amendment 487 by Warnick (page 32, line 3)

April 26, 2025
Version voted on: ESHB 2081
20 Yea 28 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat12800
Republican19000
How each member voted
Permalink to this vote

Senate · Amendment 486 by Braun (page 41, line 32)

April 26, 2025
Version voted on: ESHB 2081
21 Yea 27 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat22700
Republican19000
How each member voted
Permalink to this vote

History

  1. Effective date 7/27/2025*. (ESHB 2081)
  2. Chapter 420, 2025 Laws. (ESHB 2081)
  3. Governor signed. (ESHB 2081)
  4. Delivered to Governor. (ESHB 2081)
  5. Third reading, passed; yeas, 26; nays, 22; absent, 0; excused, 0. (ESHB 2081)
  6. Rules suspended. Placed on Third Reading. (ESHB 2081)
  7. Speaker signed. (ESHB 2081)
  8. President signed. (ESHB 2081)
  9. Minority; do not pass. (ESHB 2081)
  10. WM - Majority; do pass. (ESHB 2081)
  11. Placed on second reading by Rules Committee. (ESHB 2081)
  12. Passed to Rules Committee for second reading. (ESHB 2081)
  13. First reading, referred to Ways & Means. (ESHB 2081)
  14. Third reading, passed; yeas, 50; nays, 48; absent, 0; excused, 0. (ESHB 2081)
  15. Rules suspended. Placed on Third Reading. (ESHB 2081)
  16. Floor amendment(s) adopted. (ESHB 2081)
  17. Held on calendar. (ESHB 2081)
  18. Amendment ruled beyond the scope and object of the bill. (ESHB 2081)
  19. 1st substitute bill substituted. (ESHB 2081)
  20. 1st substitute bill substituted.
  21. FIN - Majority; 1st substitute bill be substituted, do pass. (ESHB 2081)
  22. Minority; do not pass. (ESHB 2081)
  23. Placed on second reading. (ESHB 2081)
  24. Placed on second reading.
  25. Minority; do not pass.
  26. FIN - Majority; 1st substitute bill be substituted, do pass.
  27. FIN - Executive action taken by committee.
  28. First reading, referred to Finance.

HB 2081 in other sessions

Bill numbers restart every two years, so the same number is a different bill in each session.

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