Washington 2025-2026 Regular Session Status: Enacted Bipartisan · 5 D · 1 R cosponsors

HB 2020 — Creating a business and occupation tax deduction and increasing the rate for persons conducting payment card processing activities.

Last action — Effective date 1/1/2026.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 24, 2025. Enacted.

Signed by Governor Bob Ferguson (Democratic) on May 20, 2025.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 98% · high confidence

  • Enacted

    Current position in the legislative process.

  • 6 sponsors

    1 primary, 5 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (5 D · 1 R) — cross-party backing.

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

17 added · 17 removed

Plain-language change summary

In the most recent update to Bill HB 2020, the payment card processing rate has been reduced from 3.1% to 3.0%. This change is significant because it means that businesses using these payment processing services will have lower costs, potentially allowing them to save money or pass savings onto their customers. Overall, it represents a minor but meaningful adjustment to the financial regulations in the bill.

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H-2212.1 SUBSTITUTE HOUSE BILL 2020 State of Washington 69th Legislature 2025 Regular Session By House Appropriations (originally sponsored by Representatives Berg, Orcutt, Fitzgibbon, Gregerson, Parshley, and Ormsby) READ FIRST TIME 04/08/25.
H-1595.1 HOUSE BILL 2020 State of Washington 69th Legislature 2025 Regular Session By Representatives Berg, Orcutt, Fitzgibbon, Gregerson, Parshley, and Ormsby Read first time 02/24/25.
Referred to Committee on Finance.
1 SHB 2020 (1) In computing the tax under RCW 82.04.290(4), a processor may deduct from the measure of the tax amounts retained by persons other than the processor in the following forms:
1 HB 2020 (1) In computing the tax under RCW 82.04.290(4), a processor may deduct from the measure of the tax amounts retained by persons other than the processor in the following forms:
2 SHB 2020 explicitly under ((another section in)) this chapter ((or subsection (1) or (3) of this section));
2 HB 2020 explicitly under ((another section in)) this chapter ((or subsection (1) or (3) of this section));
3 SHB 2020 any other person.
3 HB 2020 any other person.
4 SHB 2020 direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise.
4 HB 2020 direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise.
(4)(a) Except as provided in (b) of this subsection (4), upon every processor engaging within this state in payment card processing activities, as to such persons, the amount of tax with respect to such business is equal to the gross income of the business from such payment card processing activities multiplied by the rate of 3.1 percent.
(4)(a) Except as provided in (b) of this subsection (4), upon every processor engaging within this state in payment card processing activities, as to such persons, the amount of tax with respect to such business is equal to the gross income of the business from such payment card processing activities multiplied by the rate of 3.0 percent.
5 SHB 2020 (A) Issuing and authorizing the use of payment cards;
5 HB 2020 (A) Issuing and authorizing the use of payment cards;
6 SHB 2020 (ii) A national bank organized and existing as a national bank association pursuant to the provisions of the national bank act, 12 U.S.C.
6 HB 2020 (ii) A national bank organized and existing as a national bank association pursuant to the provisions of the national bank act, 12 U.S.C.
7 SHB 2020 (x) Any other person or business entity, other than an insurance general agent taxable under RCW 82.04.280(1)(e), an insurance business exempt from the business and occupation tax under RCW 82.04.320, a real estate broker taxable under RCW 82.04.255, a securities dealer or international investment management company taxable under RCW 82.04.290(2), that receives more than ((fifty)) 50 percent of its gross receipts from activities that a person described in (d)(ii) through (vii) and (ix) of this subsection is authorized to transact.
7 HB 2020 (x) Any other person or business entity, other than an insurance general agent taxable under RCW 82.04.280(1)(e), an insurance business exempt from the business and occupation tax under RCW 82.04.320, a real estate broker taxable under RCW 82.04.255, a securities dealer or international investment management company taxable under RCW 82.04.290(2), that receives more than ((fifty)) 50 percent of its gross receipts from activities that a person described in (d)(ii) through (vii) and (ix) of this subsection is authorized to transact.
8 SHB 2020 (1)(a) Beginning with business activities occurring on or after April 1, 2020, in addition to the taxes imposed under RCW 82.04.290 (2) and (4), a workforce education investment surcharge is imposed on select advanced computing businesses.
8 HB 2020 (1)(a) Beginning with business activities occurring on or after April 1, 2020, in addition to the taxes imposed under RCW 82.04.290 (2) and (4), a workforce education investment surcharge is imposed on select advanced computing businesses.
9 SHB 2020 (i) "Advanced computing" means designing or developing computer software or computer hardware, whether directly or contracting with another person, including:
9 HB 2020 (i) "Advanced computing" means designing or developing computer software or computer hardware, whether directly or contracting with another person, including:
10 SHB 2020 (i) Any hospital as defined in RCW 70.41.020, including any hospital that comes within the scope of chapter 71.12 RCW if the hospital is also licensed under chapter 70.41 RCW;
10 HB 2020 (i) Any hospital as defined in RCW 70.41.020, including any hospital that comes within the scope of chapter 71.12 RCW if the hospital is also licensed under chapter 70.41 RCW;
11 SHB 2020
11 HB 2020
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Action History

  1. Effective date 1/1/2026.

  2. Chapter 401, 2025 Laws.

  3. Governor signed.

  4. Delivered to Governor.

  5. President signed.

  6. Speaker signed.

  7. Third reading, passed; yeas, 47; nays, 0; absent, 0; excused, 1.

  8. Rules suspended. Placed on Third Reading.

  9. Placed on second reading by Rules Committee.

  10. Passed to Rules Committee for second reading.

  11. WM - Majority; do pass.

  12. Executive action taken in the Senate Committee on Ways & Means at 1:30 PM.

  13. First reading, referred to Ways & Means.

  14. Third reading, passed; yeas, 91; nays, 4; absent, 0; excused, 3.

  15. Vote on third reading will be reconsidered.

  16. Third reading, passed; yeas, 92; nays, 1; absent, 0; excused, 5.

  17. Rules suspended. Placed on Third Reading.

  18. 1st substitute bill substituted (APP 25).

  19. Rules Committee relieved of further consideration. Placed on second reading.

  20. Referred to Rules 2 Review.

  21. APP - Majority; 1st substitute bill be substituted, do pass.

  22. Executive action taken in the House Committee on Appropriations at 10:30 AM.

  23. Public hearing in the House Committee on Appropriations at 9:00 AM.

  24. Referred to Appropriations.

  25. FIN - Majority; do pass.

  26. Executive action taken in the House Committee on Finance at 1:30 PM.

  27. Public hearing in the House Committee on Finance at 8:00 AM.

  28. First reading, referred to Finance.

Sponsors

Sponsorship breakdown

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1 sponsors · 5 co-sponsors · 145 not signed on · 4 voted No

Sponsors (1)

Co-sponsors (5)

Not signed on (145)

145 members have not signed on to this bill.

Show all 145 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

3rd Reading & Final Passage (#24)

Passed 47 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Democrat 29000
Republican 18001
Total 47001
% of votes cast 98%0%0%2%
How each member voted (48)
Member Party Vote
Adrian Cortes Democrat Yea
Annette Cleveland Democrat Yea
Bob Hasegawa Democrat Yea
Claire Wilson Democrat Yea
Claudia Kauffman Democrat Yea
Deborah Krishnadasan Democrat Yea
Derek Stanford Democrat Yea
Drew Hansen Democrat Yea
Emily Alvarado Democrat Yea
Jamie Pedersen Democrat Yea
Javier Valdez Democrat Yea
Jesse Salomon Democrat Yea
Jessica Bateman Democrat Yea
John Lovick Democrat Yea
June Robinson Democrat Yea
Lisa Wellman Democrat Yea
Liz Lovelett Democrat Yea
Manka Dhingra Democrat Yea
Marcus Riccelli Democrat Yea
Marko Liias Democrat Yea
Mike Chapman Democrat Yea
Noel Frame Democrat Yea
Rebecca Saldaña Democrat Yea
Sharon Shewmake Democrat Yea
Steve Conway Democrat Yea
T'wina Nobles Democrat Yea
Tina Orwall Democrat Yea
Vandana Slatter Democrat Yea
Yasmin Trudeau Democrat Yea
Chris Gildon Republican Not Voting
Curtis King Republican Yea
Drew MacEwen Republican Yea
Jeff Holy Republican Yea
Jeff Wilson Republican Yea
Jim McCune Republican Yea
John Braun Republican Yea
Judy Warnick Republican Yea
Keith Goehner Republican Yea
Keith Wagoner Republican Yea
Leonard Christian Republican Yea
Mark Schoesler Republican Yea
Matt Boehnke Republican Yea
Nikki Torres Republican Yea
Paul Harris Republican Yea
Perry Dozier Republican Yea
Phil Fortunato Republican Yea
Ron Muzzall Republican Yea
Shelly Short Republican Yea

Official roll call →

3rd Reading & Final Passage (#3)

Passed 92 Yea · 1 Nay · 5 Other
Party YeaNayPresentNot Voting
Republican 34004
Democrat 58101
Total 92105
% of votes cast 94%1%0%5%
How each member voted (98)
Member Party Vote
Adam Bernbaum Democrat Yea
Adison Richards Democrat Nay
Adrian Cortes Democrat Yea
Alex Ramel Democrat Yea
Alicia Rule Democrat Yea
Amy Walen Democrat Yea
April Berg Democrat Yea
Beth Doglio Democrat Yea
Brandy Donaghy Democrat Yea
Brianna Thomas Democrat Yea
Chipalo Street Democrat Not Voting
Chris Stearns Democrat Yea
Cindy Ryu Democrat Yea
Clyde Shavers Democrat Yea
Dan Bronoske Democrat Yea
Darya Farivar Democrat Yea
Dave Paul Democrat Yea
David Hackney Democrat Yea
Davina Duerr Democrat Yea
Debra Entenman Democrat Yea
Debra Lekanoff Democrat Yea
Edwin Obras Democrat Yea
Gerry Pollet Democrat Yea
Greg Nance Democrat Yea
Jake Fey Democrat Yea
Jamila Taylor Democrat Yea
Janice Zahn Democrat Yea
Javier Valdez Democrat Yea
Joe Fitzgibbon Democrat Yea
Joe Timmons Democrat Yea
Julia Reed Democrat Yea
Kristine Reeves Democrat Yea
Larry Springer Democrat Yea
Lauren Davis Democrat Yea
Laurie Jinkins Democrat Yea
Lillian Ortiz-Self Democrat Yea
Lisa Callan Democrat Yea
Lisa Parshley Democrat Yea
Liz Berry Democrat Yea
Mari Leavitt Democrat Yea
Mary Fosse Democrat Yea
Melanie Morgan Democrat Yea
Mia Gregerson Democrat Yea
Monica Jurado Stonier Democrat Yea
My-Linh Thai Democrat Yea
Natasha Hill Democrat Yea
Nicole Macri Democrat Yea
Osman Salahuddin Democrat Yea
Roger Goodman Democrat Yea
Sharlett Mena Democrat Yea
Sharon Tomiko Santos Democrat Yea
Sharon Wylie Democrat Yea
Shaun Scott Democrat Yea
Shelley Kloba Democrat Yea
Steve Bergquist Democrat Yea
Steve Tharinger Democrat Yea
Strom Peterson Democrat Yea
Tarra Simmons Democrat Yea
Timm Ormsby Democrat Yea
Victoria Hunt Democrat Yea
Alex Ybarra Republican Yea
Andrew Barkis Republican Yea
Andrew Engell Republican Yea
April Connors Republican Yea
Brian Burnett Republican Yea
Carolyn Eslick Republican Yea
Chris Corry Republican Not Voting
Cyndy Jacobsen Republican Yea
Dan Griffey Republican Yea
David Stuebe Republican Yea
Deb Manjarrez Republican Yea
Drew Stokesbary Republican Not Voting
Ed Orcutt Republican Yea
Gloria Mendoza Republican Not Voting
Hunter Abell Republican Yea
Jenny Graham Republican Yea
Jeremie Dufault Republican Yea
Jim Walsh Republican Yea
Joe Schmick Republican Yea
Joel McEntire Republican Yea
John Ley Republican Yea
Joshua Penner Republican Yea
Kevin Waters Republican Yea
Mark Klicker Republican Not Voting
Mary Dye Republican Yea
Matt Marshall Republican Yea
Michael Keaton Republican Yea
Mike Steele Republican Yea
Mike Volz Republican Yea
Peter Abbarno Republican Yea
Rob Chase Republican Yea
Sam Low Republican Yea
Skyler Rude Republican Yea
Stephanie Barnard Republican Yea
Stephanie McClintock Republican Yea
Suzanne Schmidt Republican Yea
Tom Dent Republican Yea
Travis Couture Republican Yea

Official roll call →

Final Passage on Reconsideration (#8)

Passed 91 Yea · 4 Nay · 3 Other
Party YeaNayPresentNot Voting
Republican 36002
Democrat 55401
Total 91403
% of votes cast 93%4%0%3%
How each member voted (98)
Member Party Vote
Adam Bernbaum Democrat Yea
Adison Richards Democrat Nay
Adrian Cortes Democrat Yea
Alex Ramel Democrat Yea
Alicia Rule Democrat Nay
Amy Walen Democrat Yea
April Berg Democrat Yea
Beth Doglio Democrat Yea
Brandy Donaghy Democrat Yea
Brianna Thomas Democrat Yea
Chipalo Street Democrat Not Voting
Chris Stearns Democrat Yea
Cindy Ryu Democrat Yea
Clyde Shavers Democrat Nay
Dan Bronoske Democrat Yea
Darya Farivar Democrat Yea
Dave Paul Democrat Yea
David Hackney Democrat Yea
Davina Duerr Democrat Yea
Debra Entenman Democrat Yea
Debra Lekanoff Democrat Yea
Edwin Obras Democrat Yea
Gerry Pollet Democrat Yea
Greg Nance Democrat Yea
Jake Fey Democrat Yea
Jamila Taylor Democrat Yea
Janice Zahn Democrat Yea
Javier Valdez Democrat Nay
Joe Fitzgibbon Democrat Yea
Joe Timmons Democrat Yea
Julia Reed Democrat Yea
Kristine Reeves Democrat Yea
Larry Springer Democrat Yea
Lauren Davis Democrat Yea
Laurie Jinkins Democrat Yea
Lillian Ortiz-Self Democrat Yea
Lisa Callan Democrat Yea
Lisa Parshley Democrat Yea
Liz Berry Democrat Yea
Mari Leavitt Democrat Yea
Mary Fosse Democrat Yea
Melanie Morgan Democrat Yea
Mia Gregerson Democrat Yea
Monica Jurado Stonier Democrat Yea
My-Linh Thai Democrat Yea
Natasha Hill Democrat Yea
Nicole Macri Democrat Yea
Osman Salahuddin Democrat Yea
Roger Goodman Democrat Yea
Sharlett Mena Democrat Yea
Sharon Tomiko Santos Democrat Yea
Sharon Wylie Democrat Yea
Shaun Scott Democrat Yea
Shelley Kloba Democrat Yea
Steve Bergquist Democrat Yea
Steve Tharinger Democrat Yea
Strom Peterson Democrat Yea
Tarra Simmons Democrat Yea
Timm Ormsby Democrat Yea
Victoria Hunt Democrat Yea
Alex Ybarra Republican Yea
Andrew Barkis Republican Yea
Andrew Engell Republican Yea
April Connors Republican Yea
Brian Burnett Republican Yea
Carolyn Eslick Republican Yea
Chris Corry Republican Yea
Cyndy Jacobsen Republican Yea
Dan Griffey Republican Not Voting
David Stuebe Republican Yea
Deb Manjarrez Republican Yea
Drew Stokesbary Republican Yea
Ed Orcutt Republican Yea
Gloria Mendoza Republican Not Voting
Hunter Abell Republican Yea
Jenny Graham Republican Yea
Jeremie Dufault Republican Yea
Jim Walsh Republican Yea
Joe Schmick Republican Yea
Joel McEntire Republican Yea
John Ley Republican Yea
Joshua Penner Republican Yea
Kevin Waters Republican Yea
Mark Klicker Republican Yea
Mary Dye Republican Yea
Matt Marshall Republican Yea
Michael Keaton Republican Yea
Mike Steele Republican Yea
Mike Volz Republican Yea
Peter Abbarno Republican Yea
Rob Chase Republican Yea
Sam Low Republican Yea
Skyler Rude Republican Yea
Stephanie Barnard Republican Yea
Stephanie McClintock Republican Yea
Suzanne Schmidt Republican Yea
Tom Dent Republican Yea
Travis Couture Republican Yea

Official roll call →

Subjects

taxation
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Frequently asked questions

Who sponsors HB 2020?
HB 2020 is sponsored by Timm Ormsby (Democrat), Lisa Parshley (Democrat), Mia Gregerson (Democrat), Joe Fitzgibbon (Democrat), Ed Orcutt (Republican), and April Berg (Democrat).
What is the current status of HB 2020?
This bill has been enacted into law. Introduced February 24, 2025. Enacted.
Where can I track HB 2020?
Track HB 2020 free on One Click Politics — get push/email alerts when it moves.

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