SOUTH SOUND CHAMBER OF COMMERCE LEGISLATIVE COALITION 2026 LEGISLATIVE REPORT – JANUARY 22, 2026

This Week in Olympia

·       HB 2100 – Payroll Expense Tax: Heard this week in House Finance. The proposal would impose a new tax tied to payroll expenses above a set threshold. Employers raised concerns that it effectively penalizes businesses for paying competitive wages, particularly in construction, manufacturing, and other labor‑intensive sectors.

·       Millionaire’s Tax (Draft Proposal): The Governor continues to float a proposal to tax annual income above $1 million. While framed as targeting individuals, chambers are watching closely for downstream impacts on small business owners, investment decisions, and future expansion of the tax base.

·       HB 2471 / SB 6117 – Expanded Collective Bargaining: Heard this week with an executive session scheduled. Business groups are concerned this expands union bargaining frameworks to more sectors, increasing compliance complexity and costs for employers.

·       Housing & Land Use Update: Lawmakers continue advancing bills aimed at increasing housing density, streamlining permitting, and limiting local land‑use discretion. While boosting housing supply remains a priority, chambers are emphasizing the need for infrastructure capacity, workforce availability, and realistic timelines to avoid unintended consequences for local employers.

Overall Business Climate: This week highlighted growing cost‑stacking concerns—new taxes, labor mandates, and regulatory changes layered on top of existing B&O tax obligations and workforce challenges.