Hearth Insight

September 2025

NWHPBA Lobbyist Update

By Carolyn Logue, CA Logue Public Affairs

The news I have this month, as usual, is from Washington State…

Fuel Choice Initiative Will be Heard by Washington State Supreme Court

We were happy to see the Washington State Supreme Court agree to review the constitutionality of Initiative 2066 – the fuel choice initiative passed last year. I-2066 had its constitutionality questioned by opponents saying it violated the state’s two subject rule for initiatives outlined in the state Constitution. A King County judge agreed. The Building Association of Washington, all of the I-2066 supporters, and the Washington State Attorney General disagree and appealed to the State Supreme Court. That appeal will be heard and our side is gearing up for the challenge. NWHPBA was a major player in the passage of this initiative and will be helping to get it across this hurdle as well. Stay tuned for more information!

In other Washington State Business News – 

Health Insurance Premiums Set to Rise in 2026

Summary: Small businesses should prepare for higher health insurance costs next year. The Washington State Office of the Insurance Commissioner has approved an average 21% increase for 2026 Exchange health plans.

Read more here »

Average 21% rate increase approved for Washington’s 2026 Exchange health insurance market

Business Confidence Slipping with Tax Hikes

Summary: New survey results show Washington small business owners are increasingly cautious due to pending state tax increases. Many are concerned about the impact on growth and hiring. This is making Washington different from the rest of the country where small businesses are more upbeat.

Read more here »

Washington State Workers’ Compensation Rates to Rise

The Washington State Department of Labor & Industries (L&I) is proposing a 4.9 percent rise in the average hourly rate employers and workers pay for workers’ compensation insurance in 2026.  

The. proposed increase is significantly less than what L&I projects it will need to cover 2026 claim costs. As it has done in past years, the agency plans to use the workers’ compensation contingency reserve to cover the difference. This is concerning to businesses because it means the costs today will be pushed into the future. L&I has been using reserves to keep increasing costs down without tackling the rise in time loss and other workers’ compensation costs. There will be a time in the future where a very significant tax increase will be needed to make up for draining the reserves.

Businesses in Washington have opportunities to provide input before L&I makes a final decision on workers’ compensation rates. Public hearings are scheduled for Oct. 28 and 29, and a virtual-only public hearing is scheduled for Oct. 30.

10 a.m. Oct. 28

L&I Headquarters, Rooms S117, S118, S119

7273 Linderson Way SW

Tumwater, WA

9 a.m. Oct. 29

CenterPlace Event Center, Meeting Room

2426 Discover Pl

Spokane Valley, WA

10 a.m. Oct. 30 (virtual only)

Join electronically:

https://lni-wa-gov.zoom.us/j/4283482697?omn=85288279946

Meeting ID: 428 348 2697

For more information and specific numbers for your rates class, click HERE

Department of Revenue Finally Issues Guidance on new Sales Taxes Starting October 1, 2025. General B&O Tax Increases Go Into Effect January 2027.

The Department of Revenue has FINALLY released interim guidance for the Oct. 1, 2025 sales tax expansion (ESSB 5814). How this will impact your hearth industry business will vary but there is a very real chance you will see vendors you use for IT services being forced to charge sales taxes for their services that was not required before. Contact your accountant to review how and if these new taxes will impact your business, particularly for services such as IT, advertising, staffing, security, and custom website development

For more information on the new sales taxes, visit the Washington State Department of Revenue’s specific page on this issue at THIS LINK.

The other bad tax bill with impact on your businesses – SB 5801 – will go into effect on January 1, 2026. This will increase retailing, wholesaling and manufacturing B&O taxes to .05% of gross receipts.

Member Benefits

National Government Affairs

Energy Choice Act Gains Traction as U.S. House Subcommittee Schedules Hearing (9/15/25, update fromPacific HPBA)

This week, on Tuesday, September 16, the U.S. House Energy & Commerce Subcommittee will hold a legislative hearing entitled “Appliance and Building Policies: Restoring the American Dream of Home Ownership and Consumer Choice.” The hearing will include discussion on H.R. 3699, the Energy Choice Act.

Introduced by Rep. Nick Langworthy (NY-23), the bill seeks to ensure that families and businesses retain access to a wide range of energy options—including natural gas, propane, and other reliable fuels—by preventing local governments from enacting blanket bans. This legislation is important for our industry because it could protect consumer access to fireplaces, stoves, grills, and outdoor products, which depend on these energy sources. It would also safeguard thousands of jobs supported by small businesses across the country.

The hearing is a critical step in advancing the Energy Choice Act. Following this legislative discussion, the bill could move to a markup session, where committee members may propose changes and vote to advance it to the full House of Representatives. If passed into law, the Energy Choice Act would provide industry stability and protect long-term consumer choice in home energy use.

Through multiple calls to action and meetings on Capitol Hill, HPBA members have raised this profile of this important legislation, which now has 83 cosponsors.

To watch the hearing, follow the Committee’s calendar page below and a link will be made available soon for more details, including a list of witnesses and testimony in addition to a livestream of the hearing.

Thank you for your help in advocating for this important legislation. Stay tuned as we continue to monitor progress of this bill and be on the lookout for future calls to action to contact your Representative in support of the legislation.

WA’s economy faces $2.2B hit and 32,000 job losses from new tariffs, OFM reports (9/5/25, The Olympian)

A report from the Office of Financial Management (OFM) projects tariffs could cost Washington $2.2B and 31,900 jobs by 2029. Republican lawmakers are challenging the report's neutrality, point finger at Governor Ferguson for tax hikes

We Want to Hear from You!!!

The NWHPBA Communications Committee publishes the Hearth Insight monthly. If you have a story or article you would like to have shared, email the office.