According to the National Federation of Independent Business (NFIB), Washington small business owners are facing a wave of proposed tax increases and labor mandates that could significantly raise costs and compliance burdens in the coming weeks.
State lawmakers are negotiating a new budget, bills affecting property taxes, B&O rates, capital gains, and estate taxes remain active—alongside measures on paid family leave, right to repair, personnel records, and job posting regulations. The outcome of these proposals, NFIB warns, will have direct consequences for small employers across the state.
Although no tax hikes have passed yet, several bills remain in play as lawmakers work behind closed doors on the state’s two-year operating budget. Among the most impactful are HB 2081, which would increase B&O tax rates across industries, and HB 2049, a property tax bill that’s still advancing through committee. NFIB has submitted amendment language to minimize harm to the smallest businesses.
HB 2082 would raise capital gains and estate taxes, which could hurt family-owned businesses passing assets between generations. In response to NFIB’s testimony, lawmakers amended the estate tax provision to increase the small business deduction and index it to inflation—a win, but not a full safeguard.
Meanwhile, HB 1213—set to reach the governor’s desk—would expand job protections and health insurance coverage under the state’s Paid Family & Medical Leave program. NFIB opposes the bill, warning it could force rate hikes and add costs for businesses with as few as eight employees by 2028.
Other key measures include:
HB 1483 – Right to Repair: Supported by NFIB, this bill allows small businesses to repair digital devices, though it includes exemptions for Apple.
HB 1533 – Specialty Electricians: Enables apprentices to perform some residential work without delaying certification—NFIB supports it.
HB 1308 – Personnel Records: Slightly improved in the Senate, but NFIB still opposes due to liability concerns.
SB 5041 – Striking Workers: Would grant unemployment benefits during strikes; NFIB opposes.
SB 5408 – Job Postings: Seeks to reduce legal risk from missing wage data in job ads; NFIB supports the original version.
NFIB urges lawmakers to consider the disproportionate impact these measures could have on small businesses, which often lack the margins and staff to absorb sudden changes in tax rates or labor rules. With the legislative session ending April 27, time is running out for small business owners to weigh in—and for lawmakers to get it right.