WA HB1320

Increases Business and Occupation (B&O) tax rates across multiple categories by approximately 10%, effective January 1, 2027, with the general service rate rising from 1.75% to 2.1% (October 2025) then adjusting to 1.925% (January 2027)

Raises the standard extracting and manufacturing rate from 0.484% to 0.5324%, retail sales rate from 0.471% to 0.5181%, and wholesale rate from 0.484% to 0.5324%

Increases preferential rates proportionally, including semiconductor manufacturing (0.275% to 0.3025%), timber industry (0.2904% to 0.31944%), and food processing (0.138% to 0.1518%)

Raises real estate brokerage services rate from 1.5% to 1.65%, royalties rate from 1.5% to 1.65%, and contests of chance rate from 1.5% to 1.65%

Maintains tiered revenue deposits to the workforce education investment account, with 13% of general service tax revenues directed there beginning January 1, 2027