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WA SB5638
Bill
Status
2/3/2025
Primary Sponsor
Rebecca Saldana
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AI Summary
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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
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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
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Applies to all hospitals licensed under Washington state law, with affiliated hospitals permitted to file a single combined return
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Allows deductions for compensation attributed to work performed outside Washington state that does not further the hospital's in-state business activities
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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