Newsletter — April 24, 2025 | | |
Remembering Senator Bill Ramos
The Washington Retail Association joins others across the state in remembering Senator Bill Ramos for his steadfast dedication to public service and his thoughtful leadership in Olympia. Senator Ramos was a strong advocate for both workers and businesses, always striving to find balanced solutions that supported economic growth while protecting community values. His respectful approach and collaborative spirit left a lasting impact on the legislative process and those who had the privilege to work alongside him. We extend our deepest condolences to his family, friends, and colleagues.
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POLICY
ON THE LOCAL FRONT
RETAIL THEFT & PUBLIC SAFETY
IN THE NEWS
TRENDS
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What we are tracking — WR Legislative Hot List
WR is closely monitoring the bills that have advanced through the legislative process. Each week, we’ll spotlight our weekly “hot list” key legislation that could have the most significant impact on WR members.
House to Vote on Largest B&O Tax Increase in State History (HB 2081 & SB 5815)
The House is preparing to vote on the largest business and occupation tax increase in the state's history. The bill increases rates across all industry sectors, imposes an extra surcharge on financial institutions and advanced computing, and is expected to generate $6B over four years. This tax will devastate retailers with increases that could exceed profit margins. The retail B&O tax rate is historically set at the lowest rate to account for narrow profit margins, high overhead, and the added burden of collecting sales tax on behalf of the state. Raising the rate from 0.471% to 0.5%—a 6.1% increase—will increase costs for essential goods like school supplies and clothing. The bill also contains a surcharge of 5% on advanced computing software, capped at $9 million annually per company. Although the Senate held a hearing on the companion bill, SB 5815, the House version, HB 2081, appears to be the legislation that will move.
Position: WR opposes this bill.
Status: Scheduled for a hearing in Senate Ways & Means.
Job Posting “Right to Cure” Passes House After Amendment (SB 5408)
SB 5408, the "Right to Cure" legislation, passed the House 94-1 after an amendment was agreed to with advocates and the business community. The final bill protects employers from job postings published without employer consent and requires that employers disclose a fixed wage amount if offering a set wage. The time to correct a posting violation is reduced from the initial Senate-passed version of 14 calendar days to 5 business days. Statutory damages range from $100 to $5,000 per violation. The bill goes back to the Senate for a concurrence vote.
Position: WR supports this bill.
Status: Pending concurrence vote in the Senate.
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Lawmakers to vote on $12 billion tax package that raises costs on retail
Lawmakers are preparing to vote on SB 5814, HB 2081, and SB 5786, as part of their $12 billion tax package over six years. Washington’s retail sector and burden consumers already grappling with inflation, rising operating expenses, and narrow profit margins.
SB 5814, recently passed by the Senate, would:
- Extend the sales tax to critical services like security, IT, and armored transport, increasing costs for core operations and infrastructure.
- Eliminate exemptions for digital automated advertising, potentially crippling marketing budgets and threatening state competitiveness.
- Increase taxes on cigarettes and nicotine products, risking declining revenues in future budget cycles.
- Require a one-time sales tax prepayment, creating cash flow challenges and administrative complexity.
HB 2081, passed by the House, imposes a 6.1% increase in the Business & Occupation (B&O) tax rate for retailers, rising from 0.471% to 0.50% starting in 2027. It also includes a 5% B&O surcharge on advanced computing, affecting Washington’s tech and innovation sectors.
SB 5786 significantly raises license fees for grocery and convenience stores that sell alcohol, disproportionately impacting small retailers.
In total, the tax package includes:
- A 6.1% B&O tax hike for retail businesses (HB 2081)
- A 5% B&O surcharge on advanced computing (HB 2081)
- Up to 10.4% state and local sales tax on services like IT, security, custom software development, advertising, and more (SB 5814)
- A $975 increase in grocery beer/wine licensing fees (SB 5786)
- A 10% prepayment penalty for sales tax (SB 5814)
These cumulative costs amount to a tax on consumers, increasing the risk of higher prices, more inflation, and deeper economic instability.
Governor Ferguson previously warned the tax package is “unsustainable, too risky, and fails to adequately prepare Washington state for the crisis that looms ahead.” Despite this, lawmakers appear determined to push the package forward, potentially forcing the Governor to consider a veto.
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Governor cautions against $12 billion tax proposal amid budget uncertainty
In response to a proposed $12 billion in new taxes, Governor Bob Ferguson acknowledged the Legislature’s hard work addressing a $16 billion state budget shortfall, while expressing concerns about the state’s fiscal future amid federal uncertainty.
Ferguson warned that ongoing and potential cuts to federal funding, Impacting Medicaid, education, disaster relief, and public health, pose serious risks to Washington’s economy. He cited the recent denial of FEMA emergency funds and possible reductions in public health support as examples of federal unpredictability.
He also emphasized the impact of tariffs on Washington’s trade-reliant economy, highlighting how increased costs on imported goods could burden families and farmers across the state.
While praising legislative efforts to reduce reliance on a wealth tax and make the tax system more equitable, Ferguson concluded that raising $12 billion in new taxes is “too risky” during a time of economic instability. He called for a balanced solution that combines measured revenue increases with spending reforms to maintain economic resilience.
Governor.wa.gov
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Legislature advances $15.2 billion transportation budget
The Washington State Legislature has passed a $15.2 billion transportation budget for 2025–27, aiming to strengthen infrastructure, support public safety, and enhance mobility across the state.
The bipartisan-supported plan funds critical construction, preservation, and operations projects, including safety upgrades on SR 18, continued development of the North Spokane Corridor, and progress on the Gateway Project. It also maintains investments in fish passage barrier removal and carbon reduction strategies.
Key agencies like the Washington State Department of Transportation, Department of Licensing, and Washington State Patrol will receive funding to support their roles in maintaining and improving the transportation system.
The budget reflects a long-term commitment to creating a reliable, multimodal network that connects communities and supports economic activity. Lawmakers emphasized the importance of ensuring Washington’s transportation infrastructure meets current needs while planning for future growth.
Budget negotiations between the House and Senate will continue, with the final version expected to reach the Governor’s desk following the legislative session’s adjournment on April 27.
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Opinion: Regressive tax proposals harm low- income residents looking to move to lower-risk, FDA- approved nicotine products
Published in The Spokesman-Review
By Dr. Paul Racicot, Opinion
April 19, 2025
A proposal by Washington lawmakers to impose new taxes on tobacco-free nicotine products would endanger some of the state's most at-risk individuals and hurt broader public health efforts designed to curb cigarette smoking.
At issue is the tax treatment of nicotine pouches, a product that many adult smokers have used to successfully stop smoking. Unlike cigarettes, nicotine pouches give users a small nicotine fix without the need to inhale the toxic smoke responsible for the lung disease and cancer that often plague smokers.
While public policy debates over nicotine pouches are sometimes well-intentioned, they are also often replete with misinformation about the product, its users and the impact on young people.
As a licensed physician certified in the field of Smoking Cessation, I have more than 40 years of experience in treating people struggling with a variety of addictions, including narcotics, alcohol and nicotine. Of those with nicotine addictions, the vast majority are trying to quit smoking cigarettes.
Most public health experts, including the federal Food and Drug Administration, recognize that nicotine and tobacco products exist on a "continuum of risk" with cigarettes being by far the most harmful. While nicotine is highly addictive, the toxic chemicals in cigarette smoke are what do the real damage to smokers. Therefore, moving smokers toward smoke-free nicotine products like pouches can help bring substantial benefits to their health.
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Seattle Times editorial board urges cautious budgeting for Seattle
As economic uncertainty looms due to weak job growth and the potential impact of new tariffs, The Seattle Times editorial board commended the Seattle City Council for adopting the most conservative revenue forecast provided by the Office of Economic and Revenue Forecasts.
The board pointed to troubling signs in the local economy. Employment in the Seattle area grew by just 0.8% last year, well below the national average of 1.3%. The region also lost more than 5,000 construction jobs over the past year, a decline linked to the glut of commercial office space in downtown Seattle. Meanwhile, government jobs led the region’s employment growth in 2024.
The City’s JumpStart payroll tax on large employers underperformed last year, bringing in $46.7 million less than anticipated. Projections now show the tax falling short by $81 million in 2025 and $86 million in 2026.
The editorial board warned against overreliance on taxing major employers, writing: “It should not be lost in the discussion that Seattle must remain competitive with the region and other states, or it will hemorrhage good-paying jobs.”
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Public safety bill heading to the Governor
HB 2015 was approved by the House on Tuesday night and now heads to the Governor, who has indicated his intent to sign it into law. WR is grateful to the House, Senate, and all stakeholders for advancing this important piece of legislation.
Sponsored by Rep. Deborah Entenman (D-47), HB 2015 establishes a grant program for cities and counties to apply for funding to hire and retain law enforcement officers, prosecutors, public defenders, treatment specialists, and community resource officers. The bill also enables local governments to approve ongoing funding for public safety and criminal justice initiatives.
The next step is for the Legislature to fully fund the grant program in the final Operating Budget, ideally at the Governor’s requested $100 million level. WR strongly supports this effort.
Public safety, retail theft, and organized retail crime remain top priorities for WR and its members. HB 2015 represents a significant, long-term step toward addressing these critical issues.
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WAORCA launches new website to support fight against organized retail crime
The Washington Organized Retail Crime Association (WAORCA) has launched a new website at www.waorca.org, providing an updated platform to support public-private efforts in combating organized retail crime (ORC) across the state.
ORC involves theft and fraud activities carried out by individuals or groups with the intent to convert stolen goods, cash, or cargo into financial gain, without any intent for personal use. These crimes often occur across multiple stores or jurisdictions and involve tactics such as UPC switching, use of cloned credit cards, and fictitious returns. The new site offers information, tools, and resources for retailers, law enforcement, and community partners working to disrupt these criminal enterprises.
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2025 PNWER Annual Summit set for Bellevue
The 34th Annual Pacific NorthWest Economic Region (PNWER) Summit will take place July 20–24, 2025, at the Hyatt Regency in Bellevue, WA. This high-level event will bring together more than 600 leaders from across the U.S. and Canada to collaborate on shared priorities including trade, innovation, infrastructure, energy, sustainability, and economic development.
WR President & CEO Renée Sunde is serving on the host committee, contributing to content development, business outreach, and partnership engagement. The Summit provides a unique platform for direct dialogue between policymakers, legislators, and industry leaders working to strengthen regional ties.
PNWER is a public-private partnership uniting U.S. states and Canadian provinces and territories in cross-border cooperation.
For more information or to register, visit pnwer.org/2025-summit.
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Commercial emails must be accurate, rules Washington Supreme Court
The Washington Supreme Court has affirmed that commercial emails sent to or from Washington must not include false or misleading information in their subject lines, reinforcing the state’s Commercial Electronic Mail Act (CEMA).
In a recent decision, the court determined that subject lines implying time-limited promotions, such as those stating a deal ends “today only” when the offer actually continues, can be considered deceptive and in violation of the law. However, the court also clarified that general marketing “puffery,” such as phrases like “biggest sale ever,” is not subject to the same standard.
Key takeaway for retailers:
Businesses sending commercial emails must ensure that subject lines accurately represent the nature and timing of the promotion. While enthusiastic or exaggerated language is allowed, factual claims must be truthful. Retailers should audit their email marketing practices to ensure compliance and avoid potential legal challenges.
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Retail giants expand same-day prescription delivery services
As consumer demand for convenience grows, major retailers are stepping up to offer same-day prescription deliveries. Amazon and Walmart are leading the charge, rapidly expanding their pharmacy services to bring medications directly to customers’ doors, sometimes within just a few hours.
This shift follows a broader trend that accelerated during the COVID-19 pandemic, when more Americans turned to telemedicine and delivery-based care. Traditional pharmacy chains like CVS and Walgreens already offer quick delivery options, and companies like Instacart have also entered the space through partnerships with grocers such as Costco and Wegmans.
Amazon plans to reach nearly half of U.S. customers with same-day service by year’s end, while Walmart now offers it in every state except North Dakota. Both companies say convenience is the top request from customers.
Still, hurdles remain. Health coverage, cost, and trust in timely delivery can influence whether customers embrace these services. Some may also miss the personal connection with their local pharmacist.
As retail pharmacies continue to evolve, the expansion of fast delivery options may reshape how Americans access medications—offering new opportunities for retailers while keeping affordability and reliability top of mind.
APNews.com
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WR diversity statement
WR is committed to the principles of justice, equity, diversity, and inclusion. We strive to create a safe, welcoming environment in which these principles can thrive.
We value all people regardless of race, ethnicity, gender, religion, age, identity, sexual orientation, nationality, or disability, and that is the foundation of our commitment to those we serve.
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Renée Sunde, President/CEO — 360.200.6450 — Email
Mark Johnson, Sr. VP of Policy & Government Affairs — 360.943.0667 — Email
Crystal Leatherman, Dir of Local & State Government Affairs — 360.200-6453 — Email
Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email
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