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BILL · 2025–26 SESSION · LATEST VERSION SHB 2089

HB 2089: Taxes on loan interest

Supporting wildfire mitigation by modifying RCW 82.04.29005, concerning taxes on loan interest.

Summary

Directs the revenue generated by the removal of the business and occupation (B&O) tax deduction into the Wildfire Response, Forest Restoration, and Community Resilience Account.
Requires high volume mortgage lenders to pay the B&O tax on interest income received on investments or loans secured by first mortgages or trust deeds on nontransient residential properties.

From the Substitute House Bill Report (SHB 2089), written by the Legislature's nonpartisan staff. Read the full report ↗

Enacted Enacted · Chapter 131, Laws of 2026

IntroducedJan 12, 2026
Out of committeeFeb 9, 2026
Passed HouseFeb 13, 2026
Passed SenateMar 11, 2026
GovernorMar 23, 2026
LawMar 23, 2026

Prime sponsor: Shaun Scott (D-43)
Introduced: January 12, 2026 in the House
Last action: March 23, 2026
Session law: Chapter 131, Laws of 2026
Budget: Has a fiscal note
Versions: HB 2089, SHB 2089

AN ACT Relating to supporting wildfire mitigation by modifying RCW 82.04.29005, concerning taxes on loan interest;

Sponsors

Prime sponsor: Shaun Scott (D-43)

15 co-sponsors (15 Democrats, 0 Republicans)

Larry Springer D-45 Lisa Parshley D-22 Cindy Ryu D-32 Tarra Simmons D-23 Liz Berry D-36 Chipalo Street D-37 Brianna Thomas D-34 Timm Ormsby D-3 Edwin Obras D-33 Kristine Reeves D-30 Nicole Macri D-43 Mary Fosse D-38 Natasha Hill D-3 Gerry Pollet D-46 Osman Salahuddin D-48

Votes

House · 3rd Reading & Final Passage

Passed February 13, 2026

Version voted on: SHB 2089

52 Yea 40 Nay 0 Absent 6 Excused

Party	Yea	Nay	Absent	Excused
Democrat	52	5	0	2
Republican	0	35	0	4

How each member voted

Yea (52)

Nay (40)

Excused (6)

Permalink to this vote

Senate · 3rd Reading & Final Passage

Passed March 11, 2026

Version voted on: SHB 2089

27 Yea 21 Nay 1 Absent 0 Excused

Party	Yea	Nay	Absent	Excused
Democrat	27	3	0	0
Republican	0	18	1	0

How each member voted

Yea (27)

Nay (21)

Absent (1)

Matt Boehnke R-8

Permalink to this vote

History

Mar 23, 2026Effective date 7/1/2026. (SHB 2089)
Mar 23, 2026Chapter 131, 2026 Laws. (SHB 2089)
Mar 23, 2026Governor signed. (SHB 2089)
Mar 12, 2026Delivered to Governor. (SHB 2089)
Mar 11, 2026Placed on second reading by Rules Committee. (SHB 2089)
Mar 11, 2026Third reading, passed; yeas, 27; nays, 21; absent, 1; excused, 0. (SHB 2089)
Mar 11, 2026Rules suspended. Placed on Third Reading. (SHB 2089)
Mar 11, 2026President signed. (SHB 2089)
Mar 11, 2026Speaker signed. (SHB 2089)
Mar 2, 2026Minority; do not pass. (SHB 2089)
Mar 2, 2026WM - Majority; do pass. (SHB 2089)
Mar 2, 2026Passed to Rules Committee for second reading. (SHB 2089)
Feb 17, 2026First reading, referred to Ways & Means. (SHB 2089)
Feb 13, 2026Third reading, passed; yeas, 52; nays, 40; absent, 0; excused, 6. (SHB 2089)
Feb 13, 2026Rules suspended. Placed on Third Reading. (SHB 2089)
Feb 13, 20261st substitute bill substituted. (SHB 2089)
Feb 13, 20261st substitute bill substituted.
Feb 12, 2026Rules Committee relieved of further consideration. Placed on second reading. (SHB 2089)
Feb 12, 2026Rules Committee relieved of further consideration. Placed on second reading.
Feb 9, 2026FIN - Majority; 1st substitute bill be substituted, do pass. (SHB 2089)
Feb 9, 2026Minority; do not pass. (SHB 2089)
Feb 9, 2026Referred to Rules 2 Review. (SHB 2089)
Feb 9, 2026Referred to Rules 2 Review.
Feb 9, 2026FIN - Executive action taken by committee.
Feb 9, 2026Minority; do not pass.
Feb 9, 2026FIN - Majority; 1st substitute bill be substituted, do pass.
Jan 12, 2026First reading, referred to Finance.
Dec 2, 2025Prefiled for introduction.

HB 2089 in other sessions

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

HB 2089 (2023–24) Capital budget, supplemental · Did not pass · stalled on the House floor
HB 2089 (2021–22) I-405 & SR 167 bond auth. · Did not pass · died in committee
HB 2089 (2019–20) Higher ed. transparency · Did not pass · died in committee
HB 2089 (2017–18) Food flavor products tax · Did not pass · died in committee
HB 2089 (2015–16) Concealed pistol licenses · Did not pass · died in committee
HB 2089 (2013–14) Aerospace tax prefs & exemp · Did not pass · stalled on the House floor
HB 2089 (2011–12) Airplane excise tax · Did not pass · died in committee
HB 2089 (2009–10) Food service products · Did not pass · died in committee

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