House Bill 15 17 drew a large, contested public hearing in House Finance on Feb. 18. The proposed substitute would impose a $2 excise tax on retail sales of smart wireless devices with a selling price of $250 or more, with proceeds deposited into the state’s Digital Equity Account. The substitute designates that 30% of revenue be transferred quarterly into a newly created learning device and technology account for device and technology grants; remaining funds would support the Digital Equity Opportunity and Planning Grant programs.

Proponents including digital‑equity nonprofit leaders, local program managers and representatives of K‑12 and adult literacy programs testified the funding is urgently needed to close persistent device and digital literacy gaps among low‑income households, rural residents, seniors and English‑language learners. Witnesses described programs that provide adaptive technology and device support and urged a sustainable revenue source to replace short‑term federal grants.

Opponents — including the wireless industry trade group CTIA, the Washington Retail Association, and technology company groups — said the levy would be regressive, would make Washington among the highest in device‑related taxes in the nation, and would create a large compliance burden for retailers because of device SKU complexity. Several witnesses urged lawmakers to fund digital equity through the general budget or existing revenue rather than a new excise.

Department of Revenue staff reviewed technical amendments and said proposed committee changes addressed their administrability concerns. Retailers warned the new tax would require significant point‑of‑sale changes; proponents argued the levy is modest relative to device price and would create stable, targeted funding for programs that demonstrably increase adoption.

The committee left the public hearing open for further consideration and amendment; no final vote was taken.

Ending: Sponsors and DOR staff said they would continue to work with stakeholders on administrability and carve‑outs before any committee vote.