New Washington Laws and Changes Starting July 1, 2026 ~and More

Several Washington state laws and policy changes take effect July 1, 2026, affecting taxes, licenses, workplace rules, and more.

~ The bill, which went into effect June 11, also allows tribes to identify important structures or tribal resources that could be affected by construction.

House Bill 2496 improves communication with Native American tribes when it comes to new energy facilities on sacred lands. Within 90 days of receiving an energy project application, the Energy Facility Site Evaluation Council must consult with tribes to address concerns and find ways to mitigate them.

I don’t like how vague this bill is … it implies the build will happen, but they will try to consult to mitigate …but no energy facility should be approved or built on Native land unless they stand to gain improvements on all levels of this thing, imo – Nativegrl77

~ Does my landlord have to tell me about flooding?

In Washington state, landlords are required to disclose to a number of issues to potential renters, including mold and lead-based paint. Senate Bill 6237 updates the list of disclosures to include flood risks. Landlords must tell would-be tenants if a rental property is located in a special flood hazard area or an area of potential flooding. However, the bill does not require the landlord to fix issues resulting in flood damage or provide flood insurance. Tenants are responsible for any personal property lost in the case of flooding.

~ Are schools allowed to physically restrain students?

A new state law that took effect June 11 aims to improve student safety in public schools. House Bill 1795 prevents staff members from using any restraints on students that restrict breathing or blood flow to the brain. Schools also can’t build or reconfigure rooms for the purpose of isolating students. In addition, HB 1795 implements a trauma-informed developmental program to educate staffers on alternatives to restraint or isolation. Read more at: https://www.theolympian.com/news/state/washington/article316268787.html#storylink=cpy

~ Under the new law, only licensed human professionals can use titles such as “nurse,” “registered nurse” or “RN,” and provide nursing services, the Washington State Nurses Association said. “With the rapid rise of artificial intelligence, it’s important for Washingtonians to know that AI cannot act as a licensed nurse or claim to be one,” Gov. Bob Ferguson said at a March bill signing ceremony.

1. Millionaire’s Tax (partial implementation)
While the “millionaire’s tax” was passed in January 2026, a key revenue measure — a 0.5% Business and Occupation (B&O) tax on annual business income over $250 million — will officially start on July 1. The law also updates sales tax definitions and exempts certain services for schools and libraries. SB

2. Data Center Tax Exemptions Expire
Existing sales and use tax exemptions for refurbishing older data centers will end. New data centers can still apply for exemptions, but existing ones cannot get tax breaks on replacement server equipment 

~ Tax Money Spent: On Childcare, Public Health, Housing House Bill 2442, which takes effect Wednesday, gives cities and counties greater fiscal flexibility in how they use local tax revenues to support housing, childcare and public health and other needs.

For instance, “Communities can now use affordable housing sales tax revenue for rental assistance, rehab work on existing units and ongoing operations and maintenance,” Southwest Washington Accountable Community of Health said on its website.

Beginning in 2027, HB 2442 authorizes counties and cities to adopt a 0.01% local sales tax to fund services for children and families, including perinatal support, after-school programs, workforce development and transportation for facilities receiving services.

3. Mortgage Interest B&O Tax Exemption Changes
A new rule replaces the current state limit (operating in 10 or fewer states) with a financial threshold — lenders with less than $10 billion in annual mortgage originations will lose the exemption. Revenue will go to wildfire preparation and firefighting 

~ Penalties for impersonating a Police Officer? Impersonating a law enforcement officer now comes with stiffer penalties in Washington state. State law already prohibited people from impersonating an officer by wearing clothes, displaying a badge or using a vehicle bearing the insignia of a law enforcement agency such as U.S. Immigrations and Customs Enforcement, McClatchy Media previously reported. House Bill 2165, which took effect June 11, makes falsely claiming to be a cop a gross misdemeanor punishable by up to a $1,000 fine and 90 days in county jail. “Criminals posing as ICE officers (are) carrying out robberies, kidnappings and sexual assaults in several states,” state Sen. Adrian Cortes, D-Battle Ground, said in a March 19 statement. “This is unacceptable and erodes the public’s trust in law enforcement.”

~ New law changes rules for college sports betting Rules are changing for sports betting in Washington state.

Under Senate Bill 6137, which went into effect June 11, gamblers can now place wagers on in-state collegiate teams at tribal casinos. That includes betting on University of Washington, Washington State University and Gonzaga games. However, the bill bans on betting on the performance of individual student athletes. “Prior to this bill, there had been a lot of illegal gambling in terms of betting on in-state college sports, and we wanted to bring that into … a well-regulated arena,” Cortes, the bill’s co-author, told UW’s The Daily in May.Read more at:

4. Work Zone Speed Camera Fines Increase
First-time speeding tickets in road work zones will rise to $125; repeat offenses will be $248 

5. Hunting & Fishing License Fee Hikes
Senate Bill 5583 raises fees 38%:

• Big game deer license: $39 → $53.82
• Freshwater + saltwater combo: $45.50 → $62.79
• Annual Discover Pass to state lands: $30 → $45 (effective Oct. 1) 

6. Public Employee Retirement Benefits
A one-time 3% cost-of-living increase for certain public retirees will apply starting July 1 . The increase is capped at $110 a month.

7. Local Government Revenue Use
Local governments can now use existing revenue streams for criminal justice and affordable housing 

8. Healthcare Licensing & Fees
Changes to healthcare title and fee structures will take effect, along with adjustments to temporary staffing at hospital-based clinics

9. Immigrant Worker Protections
New rules prohibit employers from using workers’ immigration status to coerce wage or labor law violations 

10. Gas Tax Increase
A 6¢ per gallon hike in Washington’s gas tax begins July 1, with annual inflation adjustments

Sources: AOL, washingtonstatestandard.com, KREM.com, theolympian.com