Several of the latest bills pre-filed for the coming 2026 legislative session have the potential to expand or increase business and occupation, or B&O, taxes, according to fiscal think tank Washington Research Council. 

• HB 2097 would allow counties to impose B&O taxes beginning Jan. 1, 2027, at a maximum rate of 0.002 with the possibility for it to be raised by voters. It could also be applied to natural gas and would allow a credit against it for any city B&O taxes paid. 
• HB 2089 would expand B&O collections on loan interest for residential properties regardless of the loan originator. Those revenues would then be dedicated to the state account used for wildfire response, forest restoration and community resilience. 
• HB 2098 would remove the B&O workforce education investment surcharge cap for advanced computing businesses. The rate and cap for that surcharge is already set to balloon to 7.5% and $75 million on Jan. 1. The bill also would increase income limits for the Washington College Grant and reduce tuition for resident undergraduates by 10% per year from the 2027-28 school year through 2029-30. 

The legislative session begins Jan. 12.