New Washington Laws and Changes Starting July 1, 2026
Several Washington state laws and policy changes take effect July 1, 2026, affecting taxes, licenses, workplace rules, and more.
1. Millionaire’s Tax (partial implementation)
While the “millionaire’s tax” was passed in January 2026, a key revenue measure — a 0.5% Business and Occupation (B&O) tax on annual business income over $250 million — will officially start on July 1. The law also updates sales tax definitions and exempts certain services for schools and libraries.
2. Data Center Tax Exemptions Expire
Existing sales and use tax exemptions for refurbishing older data centers will end. New data centers can still apply for exemptions, but existing ones cannot get tax breaks on replacement server equipment
3. Mortgage Interest B&O Tax Exemption Changes
A new rule replaces the current state limit (operating in 10 or fewer states) with a financial threshold — lenders with less than $10 billion in annual mortgage originations will lose the exemption. Revenue will go to wildfire preparation and firefighting AOL+1.
4. Work Zone Speed Camera Fines Increase
First-time speeding tickets in road work zones will rise to $125; repeat offenses will be $248
5. Hunting & Fishing License Fee Hikes
Senate Bill 5583 raises fees 38%:
- Big game deer license: $39 → $53.82
- Freshwater + saltwater combo: $45.50 → $62.79
- Annual Discover Pass to state lands: $30 → $45 (effective Oct. 1)
6. Public Employee Retirement Benefits
A one-time 3% cost-of-living increase for certain public retirees will apply starting July 1
7. Local Government Revenue Use
Local governments can now use existing revenue streams for criminal justice and affordable housing
8. Healthcare Licensing & Fees
Changes to healthcare title and fee structures will take effect, along with adjustments to temporary staffing at hospital-based clinics
9. Immigrant Worker Protections
New rules prohibit employers from using workers’ immigration status to coerce wage or labor law violations
10. Gas Tax Increase
A 6¢ per gallon hike in Washington’s gas tax begins July 1, with annual inflation adjustments
Sources: AOL, washingtonstatestandard.com, KREM.com
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