[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6087169,"mediaKeyId","2891372-0d9c4a14f9a6a7ba13cb12bab6f7727a","parentId",2891372,"title","Committee hears proposal for 0.4% B&O surcharge on social media to fund youth behavioral health","audioSeconds",2822,"startMs",1124640,"endMs",3946770,"viewUrl","/Search/View?dp=1&key=2891372-0d9c4a14f9a6a7ba13cb12bab6f7727a&start=1124&end=3946","thumbnailUrl","https://assets.pipeline.soar.com/2891372-0d9c4a14f9a6a7ba13cb12bab6f7727a/thumbnail_1124640.jpg","articleUrl","/articles/6087169/Washington/Committee-hears-proposal-for-04-BO-surcharge-on-social-media-to-fund-youth-behavioral-health","mediaUrl","https://secure.pipeline.soar.com/6087169-131dca74cd0ff52c4b85c698ad12f525/orig.mp4?Expires=1771171255&Signature=DlaivtHw6SMlmTbhDO8aPsfStKX8gfJO0mgYtOZueD4-0RXDSuyf0amQou4RFimiliU0Ut3qe86S60YjfK6hAOYsQV8eoD7u3YkSjU4pssJuRXZyfKA7PvP4hID7~3lYEQ6TdM49ahZPf2o-YTwQVLF8hoDywRVfLbfeQiJBtaa7j9Z~qSBFiiPUxnOjimk9iXVDkT0rmKBE9xtEpov1gXNOKzjiFv7994HbI8~WptI6x59CvCt1yFocnQ4uwedcCK9b3SdJ0DgpCTaC09o3c0c59dn1vzZFM-gIM6tXH4c5ndLnk2HHgRixvthEM8CnCl5q2hEuITUat6quubxGhA__&Key-Pair-Id=KUT5TJCACFTXG","author","Washington Legislature","date","2025-04-07T00:00:00Z","article","Committee staff and the bill’s sponsor outlined House Bill 2038 at a House Finance Committee public hearing, emphasizing an additional business and occupation (B&O) tax on social media platforms and a new youth behavioral health account to fund prevention, telebehavioral health pilots in schools and state coordination of prenatal through age 25 behavioral health work.

Staff briefing: Christina King, committee staff, explained that the bill would add a 0.4 percent surcharge to the B&O tax on businesses operating social media platforms beginning January 1, 2026. The surcharge would apply to gross income taxable under the B&O service and other activities classification and would be in addition to existing B&O taxes. Nonprofit organizations exempt from federal income tax would be excluded.

Sponsor Rep. Lisa Callan described the measure as an investment in prevention and early intervention tied to the Washington Thriving prenatal‑through‑25 behavioral health strategic planning effort. Callan cited state youth survey data during her remarks, saying, in part, that “56 percent of those that responded to the survey of eighth graders report using social media like Instagram, TikTok, Snapchat, and others several times a day.” She framed the proposed surcharge as a way to generate sustainable funding for programs identified by existing planning efforts.

Revenue and expenditures: Staff cited Department of Revenue estimates in a fiscal note distributed at the hearing: $2.7 million in fiscal 2026 (five months of collections), $7 million in fiscal 2027 (first full year) and a 2025–27 biennial total of $9.7 million; a 2027–29 biennium estimate of $16 million. The governor’s office told staff it would spend roughly $4.97 million of the first biennium’s revenue on staffing and program support, with additional smaller DOR implementation costs for system changes and rulemaking.

Supporters argued the bill would provide predictable, dedicated funding for youth behavioral health and prevention. Dr. Stephan Blanford of Children’s Alliance said, “Social media use amongst teens has worsened this crisis,” and multiple youth, parent and provider speakers urged passage to expand access to care. Chetan Soney of the Washington Youth Alliance said the revenue proposal would support students who cannot get timely care and summarized an individual case by saying, “This bill, if passed, would save lives.” Several youth testified about difficulties accessing school‑based therapists and long waitlists.

Opponents raised legal and policy objections. TechNet and NetChoice argued the tax may violate the Internet Tax Freedom Act (ITFA) and said the bill singled out social media while exempting other online services; TechNet called the bill “discriminatory” in that it would single out social media platforms. Business groups including Association of Washington Business and the Vapor Technology Association urged opposing the bill, warning that platforms could pass costs to advertisers or small businesses and that policy solutions should come from the general fund. OPR staff indicated they would follow up on legal preemption questions for the committee.

No committee vote was taken. The public hearing was closed and staff will provide additional legal and fiscal follow‑up material to the committee record.","mediaType","Video","parentTitle","House Finance - 4/7/2025 10:00 AM","oneSentenceSummary","House Finance heard public comment on House Bill 2038, which would impose a 0.4% additional B&O tax on social media platforms and deposit proceeds into a youth behavioral health account to fund prevention, telebehavioral health pilots and an interagency youth behavioral health coordinator.","taxTitle","Finance, House of Representatives, Legislative Sessions, Washington","taxId",20261,"location","Washington","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6087174,"Committee hears bill to ban flavored tobacco, raise cigarette and vapor taxes",7066,250760,7317000,"/Search/View?dp=1&key=2891372-0d9c4a14f9a6a7ba13cb12bab6f7727a&start=250&end=7317","https://assets.pipeline.soar.com/2891372-0d9c4a14f9a6a7ba13cb12bab6f7727a/thumbnail_250760.jpg","/articles/6087174/Washington/Committee-hears-bill-to-ban-flavored-tobacco-raise-cigarette-and-vapor-taxes","https://secure.pipeline.soar.com/6087174-f74c7ac71443b80153bcd6b63b931738/orig.mp4?Expires=1771171255&Signature=dDWgRKlISQ~06AWWkol2SlY~ULRV4Vw1F~Pb3gSRqr44A1t4s32lWrm~pTWLAADcMG4tpGbGVaZUDZJllwkhvI-DwyLlx9TXgVXLsnq-QSAXyUzIEIa2BXsUhfB8RlLHbYxgYMIAvJ5e02DU1OTaEDwkQftqcyyB9dr6ZLVa0RrlmbxNd0WuIWzxSlF2ZPs4UCTjea3fQMRxCKswQ3cmr6g9ewyB4qV7kRhsQd7iAmCf02rxZUa~-X60CCEpcYmdh856bApxuR9oOWev3CNv8VRPFnBl9VCUcZw4Kk~vT6YbUac7g1iTNObLfnQbrpe2VVUbXvrVas-MuIrNLZ0FwA__&Key-Pair-Id=KUT5TJCACFTXG","At a House Finance Committee public hearing, staff and supporters outlined House Bill 2068, a package of licensing, product‑ban and tax changes aimed at reducing youth use of flavored tobacco and electronic vapor products and generating revenue for prevention and public health accounts.

The bill would ban the sale, display and advertising of any flavored tobacco or nicotine product and of entertainment vapor products beginning July 1, 2027, except for flavored shisha sold on premises where people under 21 are prohibited, staff said. It also creates new business licensing fees and raises penalties for violations, and it restructures taxes on cigarettes, tobacco products and vapor products and creates new revenue allocations for prevention, cancer research and foundational public health services.

House Office of Program Research staff member Peter Clodfelter summarized the regulatory provisions, saying the bill would prohibit “any tobacco or nicotine product that imparts a taste or smell other than the taste or smell of tobacco, including the taste or smell of fruit, candy, mint, or menthol, or if it imparts a cooling or numbing sensation.” He also described the bill’s definition of covered “entertainment vapor products” as devices that include interactive gaming or multimedia features.

The licensing changes increase many existing fees: license fees would be raised to $1,000 per year for cigarette, tobacco and vapor product retailers, wholesalers and distributors (up from a current range of $150–$650), cigarette vending machine fees would rise from $30 to $200 per year, and cigarette‑making machine fees would rise from $93 to $500 per year. The bill adds record‑keeping and inspection provisions and allows seized or forfeited products to be destroyed, staff said.

On penalties, staff said the proposal would raise monetary fines and add suspensions: a first violation for selling to persons under 21 or selling a prohibited flavored or entertainment product would carry a $2,000 fine for retailers (up from the current $1,000 for some retailers), with a 30‑day license suspension and higher fines for repeat violations in a three‑year window and a $20,000 monetary penalty for a fifth or subsequent violation.

Tax changes described by committee staff Rochelle Harris would add a $2 per pack tax on cigarettes, effective for the purposes shown in the bill, with adjustments beginning December 2028 and every three years thereafter by inflation plus 1 percent. The bill would change tobacco products and alternative nicotine product taxation to a rate equal to 95 percent of the taxable sales price (with little cigars taxed like cigarettes). Vapor products would be taxed at a flat 95 percent of the taxable sales price and the definition of taxable vapor products would be expanded to include entertainment vapor products and flavored products. Preexisting inventories would be subject to the new vapor tax with reporting to the Department of Revenue by 01/31/2026 and payment by 04/30/2026 of the difference in tax due.

Staff also specified revenue allocations: the first $5,000,000 of new cigarette tax receipts would be deposited into a youth tobacco and vapor products prevention account, with the remainder to the general fund. For vapor product receipts, the first $25,000,000 would be split 50/50 between the Andy Hill Cancer Research Endowment Fund and the Foundation Public Health Services account, with remaining revenues to the general fund. Several staff noted a fiscal note had been requested and would be distributed when available.

Sponsor Rep. Christine Reeves framed the bill as both a prevention and enforcement package rooted in personal experience. Reeves said, “my mom started smoking cigarettes when she was just 9, and menthol at that, and then spent an entire life addicted to tobacco and nicotine products” and described a goal of reducing youth initiation and supporting cessation and enforcement.

Supporters at the hearing included the Association of Washington School Principals, public health groups, the Campaign for Tobacco‑Free Kids, the American Cancer Society Cancer Action Network and a large number of students and parents who testified that flavored products and small, concealable devices have become common in school bathrooms and classrooms. The Association of Washington School Principals described vaping as “one of the biggest learning distractions” and urged ending the sale of flavored products to reduce classroom disruption.

Opponents included convenience store associations, retail trade groups, independent grocers, vape shop owners and some small‑business representatives who warned the changes would shrink legal sales and push some purchases to unregulated or out‑of‑state markets. Jackson’s Food Stores’ category manager said the proposals would be “unfair regressive taxes” and raised estimates of cross‑border and illicit market activity. Retail groups urged consideration of potential downstream impacts on small businesses that use social media and digital services for sales and outreach.

Several testifiers — including vape retailers and industry groups — urged more enforcement funding for the Liquor and Cannabis Board rather than a broad flavor ban, and recommended revenue shares or dedicated funding for enforcement. Public health and pediatric groups countered that flavors are a major driver of youth uptake and cited evidence linking nicotine exposure in adolescence to addiction and harms to the developing brain.

No committee vote on the bill was recorded during the hearing; testimony was taken and the hearing was closed.

Ending: The committee closed the public hearing on HB 2068 without taking a final vote; the bill remains under consideration and proponents and opponents submitted written testimony for committee review.","At a House Finance Committee public hearing, staff and witnesses presented House Bill 2068, which would ban flavored tobacco and entertainment vapor products, raise licensing fees and penalties, and restructure cigarette, tobacco and vapor taxes to fund youth prevention and public health accounts.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6087164,"Committee reports two Senate bills out with due‑pass recommendations",89,86490,176190,"/Search/View?dp=1&key=2891372-0d9c4a14f9a6a7ba13cb12bab6f7727a&start=86&end=176","https://assets.pipeline.soar.com/2891372-0d9c4a14f9a6a7ba13cb12bab6f7727a/thumbnail_86490.jpg","/articles/6087164/Washington/Committee-reports-two-Senate-bills-out-with-duepass-recommendations","https://secure.pipeline.soar.com/6087164-d68d2fb9a17fae7480b95036b3e1f64b/orig.mp4?Expires=1771171255&Signature=B7kIx2XLcVMAjIo5WtqBG6hGcXN11K5A9vTiUP0-lK0NovNf9xi1NUjIAquWnWOw6b~-Uge9te9LDcS5HEa7ZBHgggD8z87bofoGy70HFWTTPM3PIl-3duRw-H6drhhoKbcUPCgPtSttYnWib7U7V-T6e1wWSQKqWIUOH7jFUy~-9Gz8zPG1TC-UjSzT0sZldKhKDQ4iGQOx6Vy1AHrDwiweIVuB2T40okXI7~3x3X6NXidDM8PE8yYFERrUfbIV~mR8VU0gAY01lE6ih9TVg9QdTo7ULb4nDsnzlWgpbxt29ZZ5o981O9jp8Xcgebe9Gkfa-tbi7y2Y7EgH8sl8hw__&Key-Pair-Id=KUT5TJCACFTXG","During executive session the committee recorded voice votes to report two Senate bills out of committee with due‑pass recommendations.

Vice Chair Cher Street moved that Senate Bill 5682 be reported out of committee with a due‑pass recommendation. Representative Orcutt urged a yes vote, calling the customized employment training program “very, very important.” The committee approved the recommendation by voice vote; the clerk recorded 14 ayes, 0 nays and 1 excused. The committee recorded that SB 5682 extends the expiration date of the customized training program B&O tax credit and modifies a program report to the legislature. No amendments were offered.

The committee then moved to Senate Bill 5315. Vice Chair Street moved that SB 5315 be reported out of committee with a due‑pass recommendation. Representative Jacobson called it “a good government bill” and urged a yes vote; Representative Wallen noted it is companion to House Bill 1126 and described it as a Department of Revenue request to standardize notifications of local sales and use tax changes. The motion passed by voice vote with 14 ayes, 0 nays and 1 excused.

Both bills were reported out of committee with due‑pass recommendations and will advance according to the legislative process.","The House Finance Committee reported Senate Bill 5682 and Senate Bill 5315 out of committee with due‑pass recommendations by voice vote; both motions were moved by Vice Chair Cher Street and recorded as 14 ayes, 0 nays, 1 excused.","actionData","errors"]

Article not found

Committee hears proposal for 0.4% B&O surcharge on social media to fund youth behavioral health

Committee hears bill to ban flavored tobacco, raise cigarette and vapor taxes

Committee reports two Senate bills out with due‑pass recommendations