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End of 2025 Session Report on the Washington Legislature

End of 2025 Session Report on the Washington Legislature

May 9, 2025

NFIB State Director Patrick Connor reports from Olympia

The 2025 legislative session adjourned sine die at 6:30 p.m., Sunday, April 27.

NFIB initially tracked 150 bills this year; 120 died during the process. During the last few weeks of the session, our efforts focused on about a dozen priority bills, most of which have been sent to Gov. Bob Ferguson for his signature or veto.

The schedule for signing ceremonies for these priority bills has not yet been released. For those interested, bill signing information is available here.

A few items of note:

House Bill 1213 — Paid family & medical leave job protection and health insurance maintenance requirements
NFIB signed a coalition letter asking the governor to veto the bill. The final version of the bill includes the Senate Ways & Means Committee amendment phasing in the mandate, which will apply to businesses with 25 or more employees next year, 15 or more in 2027, and 8 or more beginning in 2028.

House Bill 1483 — Right to repair digital electronic devices
The signing ceremony for this long-time NFIB priority is tentatively set for Saturday, May 17. Time and location have not been announced.

House Bill 1788 — Workers’ compensation benefit increase
The governor signed this bill, which NFIB opposed, into law on April 25, before session ended. During floor debate, Senate Labor Committee Chair Sen. Rebecca Saldana pledged to hold a committee work session during the interim on workers’ compensation wage replacement benefits. This was in exchange for Sen. Curtis King withdrawing an NFIB amendment that would have directed the Department of Labor & Industries to convene stakeholders to negotiate changes in the antiquated wage calculation process.

House Bill 2049 — Education funding
The House stripped the property tax sections from the bill, allowing NFIB to be neutral.

House Bill 2081 — B&O taxes
NFIB was primarily concerned with Part I of the bill, which will increase base B&O rates from either 0.471% or 0.484% for most classifications to 0.5% of gross. We were unsuccessful in our efforts to adjust the Small Business Tax Credit (SBTC) through amendments. However, House Finance Committee Chair Rep. April Berg specifically mentioned our concern on the floor, saying a trailer bill would be introduced next session to address this issue. Rep. Mari Leavitt has already offered to sponsor that legislation.

Senate Bill 5041 — Unemployment benefits for striking workers
NFIB sent a letter asking Gov. Ferguson to veto this legislation. The final bill retains the two-week delay before striking workers can file for benefits, and includes a six-week limit on benefit payments.

Senate Bill 5813 — Capital gains and estate tax
NFIB was successful in adding an increase to the Qualified Family-Owned Business Interest (QFOBI) deduction, and including an annual inflationary adjustment to it, thanks to an amendment by NFIB member and Senate Republican Leader Sen. John Braun. In simplest terms, if a family-owned firm valued at $6 million or less transfers ownership upon the death of the owner to another family member who has been involved in the business, a $3 million QFOBI deduction is applied to the value of the estate. Then, the $3 million base exclusion is applied. This will substantially reduce or eliminate tax liability on these intergenerational ownership changes.

Prior Legislative Reports

April 25: Plan to Increase Property Taxes Shelved

April 18: Lawmakers Hunker Down on Budget and Tax Issues

April 12: Tax Increases Loom as Session Draws to a Close

March 28: Small Business Dodges Tax Bullets

March 22: NFIB Testifies on Two Big WC, UI Bills

March 15: How of Origin Deadline Passes, Sending Many Bills to an Early Grave

March 8: Bill Giving Striking Workers UI Benefits Passes Senate

February 28: Lawmakers Trying to Skirt Federal Law on Unemployment Benefits

February 21: Minimum Wage Bills Dead For Now

February 15: NFIB Members Turn Out in Force to Oppose Minimum Wage Bill

February 8: Minimum Wage Bills Coming Up for First Hearings 

January 31: Entrepreneurs called on to testify on upcoming legislation by signing-in

January 25: NFIB Testifies Against Giving Striking Workers Unemployment Benefits

January 18: Washington State Legislature Begins 2025 Session

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