Several important tax legislation updates were made in the 2025 legislative session. These changes may impact your business’s operations and financial planning.
Key updates include:
- Local Sales/Use Tax: Local governments have the option to impose an additional 0.1% local sales/use tax, intended to fund public safety initiatives.
- Zero-Emission Vehicle (ZEV) Credit Excise Tax: A new excise tax will be implemented on the sale or banking of surplus Zero-Emission Vehicle (ZEV) credits.
- Capital Gains Tax Increase: The capital gains tax rate will increase on annual long-term capital gains exceeding $1 million.
- Reusable Bag Fees: He legislature modified requrements that retail establishments are required to collect on reusable plastic bags.
We strongly encourage you to review the full details of these legislative changes to understand their specific implications for your business and consult with your tax advisor or accountant to discuss how these changes may affect your particular situation and to ensure compliance.
You can find comprehensive information on these updates and more by visiting the Washington State Department of Revenue’s official publication at:
https://dor.wa.gov/forms-publications/publications-subject/tax-topics/2025-tax-legislation