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WashingtonHB 20892025-2026 Regular SessionHouse

Supporting wildfire mitigation by modifying RCW 82.04.29005, concerning taxes on loan interest.

Sponsored By: Shaun Scott (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Mortgage tax revenue supports wildfire safety

By October 15, 2027, and each October 15 afterward, Washington's Department of Revenue must estimate the added mortgage-tax revenue. The estimate covers the prior fiscal year, and the department must promptly notify the state treasurer. Beginning November 1, 2027, and each November 1 afterward, the treasurer transfers that amount from the general fund. The money goes to the wildfire response, forest restoration, and community resilience account, supporting wildfire work and related workforce investments. The law sets no fixed transfer amount, and the department cannot change an estimate after its transfer.

Higher taxes for large mortgage lenders

Beginning July 1, 2026, Washington expands its business-and-occupation tax on mortgage interest and certain servicing fees. The tax covers qualifying lenders and their affiliates. A lender qualifies as a state-defined specified financial institution or through its federally reported mortgage volume. The volume threshold is at least $10 billion in closed mortgage originations in the previous calendar year. Loans must be mainly secured by first mortgages or trust deeds on residential properties not used for temporary stays. These rules replace the prior lender-location test. The tax falls on lenders, not directly on borrowers; the law does not set changes to borrowers' rates or fees.

Sponsors & Cosponsors

Sponsor

  • Shaun Scott

    Democratic • House

Cosponsors

  • Brianna Thomas

    Democratic • House

  • Chipalo Street

    Democratic • House

  • Cindy Ryu

    Democratic • House

  • Edwin Obras

    Democratic • House

  • Gerry Pollet

    Democratic • House

  • Kristine Reeves

    Democratic • House

  • Larry Springer

    Democratic • House

  • Lisa Parshley

    Democratic • House

  • Liz Berry

    Democratic • House

  • Mary Fosse

    Democratic • House

  • Natasha Hill

    Democratic • House

  • Nicole Macri

    Democratic • House

  • Osman Salahuddin

    Democratic • House

  • Tarra Simmons

    Democratic • House

  • Timm Ormsby

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 79 • No: 61

Senate vote • 3/11/2026

3rd Reading & Final Passage

Yes: 27 • No: 21

House vote • 2/13/2026

3rd Reading & Final Passage

Yes: 52 • No: 40 • Other: 6

Actions Timeline

  1. Effective date 7/1/2026.

    3/23/2026House

  2. Chapter 131, 2026 Laws.

    3/23/2026House

  3. Governor signed.

    3/23/2026legislature

  4. Delivered to Governor.

    3/12/2026legislature

  5. Placed on second reading by Rules Committee.

    3/11/2026House

  6. Third reading, passed; yeas, 27; nays, 21; absent, 1; excused, 0.

    3/11/2026House

  7. Rules suspended. Placed on Third Reading.

    3/11/2026House

  8. Speaker signed.

    3/11/2026legislature

  9. President signed.

    3/11/2026legislature

  10. Minority; do not pass.

    3/2/2026House

  11. WM - Majority; do pass.

    3/2/2026House

  12. Passed to Rules Committee for second reading.

    3/2/2026House

  13. First reading, referred to Ways & Means.

    2/17/2026House

  14. Third reading, passed; yeas, 52; nays, 40; absent, 0; excused, 6.

    2/13/2026House

  15. Rules suspended. Placed on Third Reading.

    2/13/2026House

  16. 1st substitute bill substituted.

    2/13/2026House

  17. Rules Committee relieved of further consideration. Placed on second reading.

    2/12/2026House

  18. Referred to Rules 2 Review.

    2/9/2026House

  19. FIN - Majority; 1st substitute bill be substituted, do pass.

    2/9/2026House

  20. Minority; do not pass.

    2/9/2026House

  21. FIN - Executive action taken by committee.

    2/9/2026House

  22. First reading, referred to Finance.

    1/12/2026House

  23. Prefiled for introduction.

    12/2/2025House

Bill Text

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