2018 Tax legislation
The following is a brief summary of the tax-related bills passed by the Legislature and signed into law by Gov. Inslee during the 2018 legislative session:
Convention and trade center tax expanded
Accountable Communities of Health – B&O tax exemption
Renewable natural gas – tax preference expanded
Oil spill response and oil spill administration taxes expanded
Washington Tourism Marketing Authority established
Fish and wildlife data
Self-produced fuel clarification
Tax preferences extended
Convention and trade center tax expanded
This bill expands the convention and trade center tax to include lodging provided by:
- hotels/motels and similar facilities with fewer than 60 units, and
- short-term home-sharing arrangements/vacation rentals.
The tax does not apply to lodging provided by:
- facilities in a city with a population of less than 300,
- hostels, and
- lodging operated by a university health care system.
Effective October 1, 2018. (2SHB 2015, Chapter 245, Laws of 2018)
Special Notice coming soon
Accountable Communities of Health – B&O tax exemption
This bill provides a business and occupation (B&O) tax deduction for certain Medicaid incentive payments received from federal, state or local governments by:
- Accountable Communities of Health (ACH);
- Public hospitals; and
- Hospitals affiliated with a state educational institution.
Effective March 15, 2018. (SHB 2998, Chapter 102, Laws of 2018)
Special Notice: Business and Occupation (B&O) Tax deduction available for your Delivery System Reform Incentive Payments (DSRIP)
Renewable natural gas – tax preference expanded
This bill expands the sales and use tax exemptions for anaerobic digesters. The exemption now applies to the equipment necessary to process biogas by an anaerobic digester and a landfill into marketable coproducts, such as fuel, electricity, and compost.
Effective July 1, 2018. (ESHB 2580, Chapter 164, Laws of 2018)
Special Notice: Tax Incentives for Converting Biogas into Marketable Coproducts and Manufacturing Wood Biomass Fuel
Oil spill response and oil spill administration taxes expanded
Owners of crude oil or petroleum products that are delivered via pipeline in Washington may have to pay oil spill response and oil spill administration taxes
Effective April 1, 2018. (E2SSB 6269, Chapter 262, Laws of 2018)
Tax Topics Article: Oil spill response tax and oil spill administration tax.
Washington Tourism Marketing Authority established
This bill establishes the Washington Tourism Marketing Authority to contract for statewide tourism marketing services.
Effective June 7, 2018. (E4SSB 5251, Chapter 275, Laws of 2018)
Fish and wildlife data
This bill tightens public disclosure laws concerning the release of certain tribal and commercial fish, and shellfish harvest information.
(HB 2307, Chapter 214, Laws of 2018)
Self-produced fuel clarification
This bill clarifies that the phased-in state use tax rate for refinery fuel gas takes effect January 1, 2018.
(SHB 2424, Chapter 92, Laws of 2018)
Special Notice: Self-Produced Fuel subject to use tax
Tax preferences extended
- Adaptive automotive equipment for disabled veterans – The law extends the sales and use tax exemption for certain automotive adaptive equipment until July 1, 2028. (2SHB 2269, Chapter 130, Laws of 2018) Special Notice coming soon
- Electrolytic processing – The law extends the electrolytic processing public utility tax (PUT) exemption until December 31, 2028. This PUT exemption applies to electricity sold by a utility to a chlor-alkali electrolytic processing business or sodium chlorate electrolytic processing business for the electrolytic process. (SB 6007, Chapter 146, Laws of 2018) Article: Power for electrolyte processing - public utility tax exemption