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WA SB5638

Bill

Status

Introduced

2/3/2025

Primary Sponsor

Rebecca Saldana

Click for details

Origin

Senate

2025-2026 Regular Session

AI Summary

  • Imposes a 7.5% excise tax on hospitals that pay "excess compensation" to their five highest-paid non-clinical employees, plus the lead administrator if not already included

  • Defines "excess compensation" as annual total compensation exceeding 10 times the state's average annual wage, effective January 1, 2026, with first taxes due in 2027

  • Applies to all hospitals licensed under Washington state law, with affiliated hospitals permitted to file a single combined return

  • Allows deductions for compensation attributed to work performed outside Washington state that does not further the hospital's in-state business activities

  • Revenue intended to fund health care access programs, including health equity initiatives and expanded reproductive care services

Legislative Description

Funding health care access by imposing an excise tax on the annual compensation paid to certain highly compensated hospital employees.

Last Action

By resolution, reintroduced and retained in present status.

1/12/2026

Committee Referrals

Ways & Means2/3/2025

Full Bill Text

No bill text available