ArticleWashington Governor Signs Biennial Operating Budget and Transportation Funding Bills to Make Important Tax Changes to B&O, Sales and Use, Capital Gains, and Estate Taxation
May 22, 2025Washington Gov. Bob Ferguson signed tax bills to address a $16 billion budget shortfall, increasing B&O, capital gains, and estate tax rates, extending sales tax to more services, and taxing zero-emission vehicle credits. B&O tax changes effective January 1, 2027, include rate increases for manufacturing, wholesaling, and retailing, with service tax rate changes effective October 1, 2025.