Transcript Highlights:

• in House Bill 2081, codifying much of our guidance, but also extending the B&O tax deduction to nonprofits
• I'm hearing from school districts and a lot of nonprofit organizations that are saying they're getting
• So that is just the nature of Title 82: nonprofits and government, everyone pays those taxes.
• So that is just the nature of Title 82: nonprofits and government, everyone pays those taxes.
• From nonprofits large and small, from Aberdeen to Spokane, as well as independent teaching artists.

Committee: House Finance

Summary: The House Finance Committee held a work session that began with welcoming new member Rep. Janice Zahn, who introduced herself as representing the 41st Legislative District. The committee then received a Department of Revenue update on the Antio-related legislation. DOR explained the Washington Supreme Court’s Antio decision on the B&O deduction for investment income, the department’s post-decision guidance, and the 2025 legislative changes in HB 2081 and SB 5167, including an expanded voluntary disclosure agreement for entities with unreported investment income. DOR said the expanded program offers broader penalty and interest relief and applies to both registered and unregistered businesses, but participation has been minimal so far because additional implementation questions remain unresolved. The committee next heard the annual update on the Working Families Tax Credit. DOR reported record participation in 2025, with about $205 million refunded through the first 10 months and a major increase in applications after TurboTax integrated the credit. Officials said the program reached more than 409,000 children this year, but demographic response rates fell because TurboTax did not present optional demographic questions. DOR also discussed outreach efforts, the end of funding for community outreach partners after 2025, and challenges including fraud involving third-party preparers, turnover in eligible households, immigration-related reluctance among ITIN holders, data-sharing barriers, and difficulty verifying self-employment income. Members asked about fraud remedies, and DOR said it can pursue recipients for fraudulent refunds and may work with law enforcement, but the statute does not provide direct penalties against preparers. The final DOR presentation covered implementation of Engrossed Substitute Senate Bill 5814, which expanded retail sales tax to certain services effective October 1. DOR described its outreach and guidance process, including 16 listening sessions, an online survey, a centralized guidance page, special notices, and about 95,000 direct taxpayer contacts. Officials said ruling requests surged sharply around the effective date, especially for live presentations, advertising, and software/IT services, and formal rulemaking is expected after the 2026 session. Committee members questioned whether the fiscal note anticipated impacts on schools and nonprofits and whether the department’s estimates should be revisited. The committee then heard stakeholder testimony from Expedia, T-Mobile, and the Construction Industry Training Council, followed by Clover Park School District and Seattle Theatre Group/Inspire Washington. Witnesses argued that SB 5814 creates complexity, uncertainty, and competitive disadvantages for Washington businesses and nonprofits, especially for digital advertising, IT, training, and live presentation services. School and nonprofit representatives said the tax raises costs for education, apprenticeship, arts, and cultural programming, with Clover Park warning of a roughly $1.2 million annual hit to special education-related contracted services. No votes were taken; the meeting ended with the chair saying the committee would continue working on SB 5814 issues in the next legislative session.

Transcript Highlights:

• So in California, nonprofits can be LLCs too.
• We think we should be on the board as a nonprofit.
• Yeah, I just want to echo on the nonprofits that, as nonprofits, we're required by the IRS to make sure
• That's the benefit of being a nonprofit.
• Those are the nonprofits.

Summary: The commission’s fifth meeting focused on consumer protections and resident rights in continuing care retirement communities (CCRCs), with a presentation by Yvonne Choyah of UC Law San Francisco. She described California’s CCRC framework, including entrance fee structures, monthly fee increases, contract types (A, B, and C), disclosure requirements, and regulatory oversight. A major theme was that residents often do not understand the contracts they sign, while providers retain broad discretion over fees, transfers, terminations, and changes to the physical plant. She also emphasized that California’s regulator is understaffed and not well suited to oversee the complex financial and insurance-like aspects of CCRCs, and that resident complaints and litigation can be slow and difficult. Choyah and commission members discussed several consumer-protection issues, including refundable versus repayable-on-resale entrance fees, rising monthly care fees, the decline of life care contracts, and the need for clearer disclosures and better comparative data for prospective residents. She noted that California requires annual disclosure statements, resident bill of rights materials, and some fee-related reporting, but that enforcement and accessibility remain weak. Members raised questions about resident board representation, accreditation, refund requirements, and whether state agencies or resident associations could help explain contracts to consumers before admission. Choyah suggested stronger oversight, more financial expertise in regulation, and better transparency about ownership and fee-setting. The meeting ended with discussion of the commission’s next steps toward its August report. Staff said a draft report would be prepared from the commission’s discussions and circulated for comment before final revisions. The chair also announced staff transitions: Jennifer would be leaving the State House role, and Juliana Fernandez and Vicky Halal would be the main contacts going forward. The commission adjourned after thanking Choyah for her presentation and answering member questions.

Transcript Highlights:

• We support nonprofit service organizations near our posts.
• We support nonprofit service organizations near our posts.
• We support nonprofit service organizations near our posts.
• </c> um nonprofit um nonprofit organizations<00:29:38.640><c> that</c><00:29:38.799><c> receive</c><00
• </c> number of our M uh nonprofit number of our M uh nonprofit organizations<00:49:16.359><c> that</c

Summary: The committee took up House File 169, which would change the tax structure for charitable gambling. Representative Robbins offered and the committee adopted the A1 author’s amendment, described as a technical correction to ensure sports-themed tip boards are not inadvertently taxed under the bill. Robbins then presented the bill as a way to replace the current tiered combined net receipts tax on charitable gambling with a flat 5% rate, arguing charities were being overtaxed and that prior promises of relief had not been fully delivered. Chair Stevenson pushed back on several of Robbins’ factual claims, correcting the record on the status of E-pull tabs, the share of charitable gambling revenue they represent, and the amount of tax relief already enacted in 2023 and 2024. He said E-tabs were not eliminated, that the revenue split between paper pull tabs and E-tabs is closer to 45/55, and that charities had already received a $15 million tax cut plus savings from reduced developer fees. Robbins responded that the changes still significantly reduced revenue and that the bill was intended as a middle-ground approach. Testimony largely came from charitable gambling and veterans groups in support of the bill. Rachel Jenner of Allied Charities of Minnesota said nearly 1,000 charities depend on charitable gambling, cited high taxes and fees, and said many organizations were seeing revenue declines after the new E-pull tab rules took effect. Dr. Christy Jano of the American Legion Department of Minnesota said charitable gambling funds support veterans, youth, and community programs, and that a flat 5% tax would help posts continue those efforts. Members asked about the size of the revenue drops and how much gambling proceeds go to overhead and operating costs; Jenner said the losses varied by organization and that it was too early to know the long-term effect, while Jano said some expenses are used for property taxes and building upkeep. The committee then moved on to additional testimony, including Tim Angstrom, but no final vote on the bill was taken in the portion provided.

Transcript Highlights:

• We're not a 501(c)(3) nonprofit.
• you're not actually a nonprofit.
• you're not actually a nonprofit.
• you're not actually a nonprofit.
• you're not actually a nonprofit.

Summary: The work session focused on HB 54, which would allow New Hampshire’s alternative treatment centers to operate for profit. Chair David Nagel opened by identifying the main concerns: whether members agreed with the bill conceptually, whether the proposal could be shaped to avoid a gubernatorial veto, and whether it could lead to “big cannabis” taking over. He also emphasized that the bill would not change the existing oversight structure, which remained under RSA 126-X. Representative Wendy Thomas said the governor’s objections in past sessions appeared to center on the state’s preference for a state-run model and broader policy concerns, but no one present knew the current governor’s position. Several speakers argued the bill was primarily about financing and access, not expanding the number of dispensaries. Matt Simon of Granite Leaf Cannabis said the current nonprofit structure makes it difficult to raise capital, pay down debt, and open additional access points, and that the bill would be a corporate restructuring rather than a change in day-to-day regulation. Brandon Pollock of TASCAL Wellness said medical cannabis programs in most other states are for-profit, and that New Hampshire’s nonprofit requirement has left ATCs burdened with high-interest debt and higher prices that push patients to Maine, Vermont, or the street market. He said converting to for-profit status could allow conventional financing, lower prices, and help keep patients in the regulated program. Members also discussed whether for-profit ownership would invite outside corporate control. Witnesses said the bill would not open the market to new operators, would not change advertising rules, and would include restrictions on ownership transfers for a period of time; “foreign corporation” was explained as an out-of-state entity. One speaker noted that the bill is similar to earlier versions that passed both chambers with strong support but never became law. No vote was taken during the work session; the discussion was informational and aimed at addressing concerns before the bill moved forward.

Transcript Highlights:

• Nonprofit. Nonprofit. Okay. Say that again? Nonprofit. Nonprofit.
• Oh, in terms of the burden to nonprofits versus the burden to farmers, nonprofits are the ones that are
• Oh, in terms of the burden to nonprofits versus the burden to farmers, nonprofits are the ones that are
• We are a nonprofit in the same boat as many nonprofits.
• My nonprofit partners with YWCA. We have an MOU with them.

Bills: HCR41 , HB11 , HB227 , HB243 , HB278 , HB335 , HB424 , HB454 , HB455 , HB492 , HB623 , HB641 , HB660 , HB708 , HB719 , HB940 , HB1029 , HB1053 , HB1069 , HB1077

Committee: House Judiciary

Summary: The committee first took up H.C.R. 41, which would direct the ATC to allow electronic rebates for beer purchases and clarify that rebates are the manufacturer’s responsibility. The author and supporters said it would align beer with wine and other liquor rules. With no opposition, the resolution was moved forward. The committee then advanced H.B. 1029, which extends a moratorium on certain alcoholic beverage permits in House District 3 to give Shreveport and the MPC more time to revise local ordinances; it also moved forward without objection. The committee next considered two related bills by Rep. Egan on district attorney funding. H.B. 660, as amended, raises the state warrant amount used to support assistant district attorneys from $50,000 to $60,000 and sets district attorney salaries at $65,000 effective July 1, 2026. The Louisiana District Attorneys Association and several DAs supported the bill, saying it would help recruit and retain prosecutors. H.B. 719, also amended, increases the number of assistant district attorney warrants in many judicial districts statewide, with supporters describing it as a response to crime, population changes, and local workload needs. Both bills were reported favorably as amended. Rep. Ventrella’s H.B. 227, allowing court filings on letter-sized paper instead of only legal-sized paper, was also moved favorably. The committee then heard extensive testimony on H.B. 335 by Rep. Henry, which would expand citizenship verification requirements for entities administering public benefits. Supporters said it was meant to ensure state dollars go to U.S. and Louisiana citizens and to add accountability for NGOs; opponents, including farmers, food-access nonprofits, and health providers, argued it would create administrative burdens, chill participation in SNAP-related programs, and discourage vulnerable people from seeking food or medical help. After an amendment exempting nonprofit food distribution was adopted, the bill was reported favorably by a 12-5 vote. Finally, the committee took up H.B. 623, a tobacco and vapor products permitting bill. After adopting a three-minute rule, the committee accepted an amendment removing tobacco products from the proposed three-tier permitting system and excluding lawful marijuana products authorized by LDH. The amended bill was then reported favorably. The transcript ends as the committee was beginning H.B. 708.

Transcript Highlights:

• The nonprofit is operating it? I'm sorry, I apologize.
• The nonprofit is operating it? I'm sorry. I apologize. was charged.
• Is that a nonprofit is operating a, I'm sorry, I apologize.
• Nonprofit organizations do not have that authority.
• It's nonprofit. It's nonprofit.

Committee: Senate Rules

Transcript Highlights:

• This was not an easy report to pull together because of all the anomalies of reporting of our nonprofit
• development. together because of all the anomalies of reporting of our nonprofit developers on the 990s
• Is for the nonprofit prior to transfer of home ownership, and one of the questions that has come up is
• Nonprofit housing development for rental units.
• So if I got this wrong about the homeowner benefiting versus the nonprofit, and do you have any specific

Committee: Joint Citizen Commission for Performance Measurement of Tax Preferences

Summary: The Citizens Commission for Performance Measurement of Tax Preferences met on September 22, 2025, with five voting members present and a quorum. The commission first approved the August 6, 2025 meeting minutes by unanimous vote. The main purpose of the meeting was public testimony on the 2025 tax preference reviews. Two witnesses testified. Joey Halverson of Tote Maritime Alaska spoke in support of maintaining the tax preference for natural gas used as a transportation fuel, emphasizing LNG’s role as a cleaner marine fuel, the company’s investments in vessel conversions and fueling infrastructure, and the resulting reductions in greenhouse gases and other emissions. Commissioner Forsyth recused himself for this testimony. Michelle Preston, CEO of Habitat for Humanity of Washington State, testified in support of the tax preference for low-income homeownership developers, saying the exemption helps Habitat affiliates advance homeownership and remain financially sustainable, while also noting reporting inconsistencies and the need for clearer, more collectible metrics. Commissioners asked questions about affiliate accounting, the distinction between benefits to nonprofits versus homebuyers, and whether a shorter renewal/reporting cycle might be more workable. JLARC staff then outlined the process for adopting commission comments on the 2025 tax preference reviews. Voting members will receive a web-based comment form to indicate whether they endorse each recommendation and whether they wish to add comments or recuse themselves, with responses due September 30. The chair will compile the responses for consideration at the October 21, 2025 meeting. The commission also noted that individual members may submit minority reports, and the meeting adjourned after reminders about submitting written testimony and the next meeting date.

Transcript Highlights:

• So you are either a nonprofit or you are not a nonprofit, right?
• at nonprofits as a whole, right?
• <00:19:07.280><c> view</c> yes they're a nonprofit but in my view yes they're a nonprofit but in my view
• as a whole we look looking at nonprofits as a whole we look at<00:20:16.720><c> nonprofits</c><00:20
• which nonprofits we think are are good which nonprofits we think are bad<00:20:51.760><c> and</c><00

Committee: House Higher Education Finance and Policy

Transcript Highlights:

• Third-party litigation... ...servers, companies, employers, nonprofits, and others who are concerned
• Those increased costs flow straight into higher insurance premiums for families, renters, nonprofits,
• Those increased costs flow straight into higher insurance premiums for families, renters, nonprofits,
• process outlined in the chapter of state law governing acquisitions of nonprofit hospitals.
• nonprofit status.

Summary: The committee held public hearings on House Bill 2255, House Bill 2548, and House Bill 2320. HB 2255 would regulate third-party litigation funding by requiring disclosure of funders and agreements, prohibiting funder control over litigation, capping funder recovery at 25%, and creating enforcement remedies. Supporters, including the sponsor, insurance groups, and liability reform advocates, described it as a transparency and consumer-protection measure that could improve court efficiency and reduce costs. Opponents, including the Washington State Association for Justice and the commercial litigation funding industry, argued it would burden plaintiffs, reveal protected work product, chill access to justice, and create satellite litigation. No vote was taken; the chair closed the hearing and asked testifiers to submit written comments. HB 2548 would expand state oversight of health care market transactions by broadening the types of mergers, acquisitions, asset sales, and ownership/control changes that trigger notice to the Attorney General, pausing transactions until information requests are substantially complied with, expanding interagency data sharing, and revoking nonprofit status in certain transactions. Supporters, including patient advocates, nurses, the Office of the Insurance Commissioner, the Attorney General’s office, physicians, and individual health care workers, said private equity and consolidation are driving higher costs, reduced access, and lower quality. Opponents from the Washington State Hospital Association and MultiCare said the bill is unclear, may contain drafting errors, does not adequately target private equity structures, and could create problems around nonprofit status and charitable assets. The hearing ended with the committee moving on to the next bill. HB 2320 would update Washington’s ghost gun laws to address 3D-printed firearms, CNC manufacturing, digital firearm manufacturing code, and the sale of machines marketed for firearm production, and would make certain violations per se Consumer Protection Act violations. The sponsor and supporters, including school officials, gun violence prevention advocates, a trauma survivor, a 3D-printing industry representative, and others, said the bill closes a public safety loophole and responds to the growing availability of untraceable weapons. Opponents, including the NRA, makerspace representatives, and some industry witnesses, argued the bill is overbroad, may sweep in lawful 3D-printing and CNC activity, raises First, Second, and Fifth Amendment concerns, and could create uncertainty through rebuttable presumptions and the CPA provisions. The transcript ends during the HB 2320 hearing, with additional testimony panels still to come and no final committee action recorded.

Transcript Highlights:

• This bill is about leveling the playing field among nonprofit child care centers.
• </c><01:03:56.400><c> Child</c> the playing field among nonprofit Child the playing field among nonprofit
• ><01:03:58.680><c> child</c> Care Centers currently nonprofit child Care Centers currently nonprofit
• I just wondered why it is limited to nonprofits that rent.
• </c> I can't speak for every single nonprofit I can't speak for every single nonprofit child<01:13:08.199

Committee: House Taxes

Transcript Highlights:

• Kristen Juan is the CEO of My Sister's House, a nonprofit organization dedicated to serving survivors
• Kristen Huan is the CEO of My Sister's House, a nonprofit organization dedicated to serving survivors
• Kira Kassansis is a lifelong nonprofit professional, community leader, and public servant.
• She also co-founded a nonprofit to advocate for safe landfills nationwide.
• Janice Haeckel has served as a nonprofit and municipal leader for more than 35 years.

Transcript Highlights:

• WE HAVE OVER 20,000 FAITH INSTITUTIONS AND A 10,000 PLUS NONPROFITS AND SEVENTEEN MILLION FLORIDIANS
• TO BE HELPFUL WITH THOSE CONNECTIONS FOR ORGANIZATIONS AND COMMUNITY PARTNERS OUT THERE IN THE NONPROFITS
• HOPE FLORIDA HELPS CONNECT THE NEEDS OF THE COMMUNITY WITH THE MINISTRIES AND ORGANIZATIONS OF NONPROFITS
• OKAY AS SOMEONE WHO IS A PRESIDENT AND CEO OF A NONPROFIT HOPE VILLAGE OF AMERICA.
• I FEEL THE MORE INFORMATION AND THE MORE RESOURCES WE HAVE TO CONNECT TO THOSE IN NEED WITH NONPROFITS

Transcript Highlights:

• I’m Rachel Hatch, Chief Impact Officer at Institute for the Future, and we’re a nonprofit based in Palo
• Sure, the nonprofit sector, but as we saw in the LA Times the other day, we need to make sure that faux
• Through my work collaborating with artists, nonprofits, schools, healthcare systems, and universities
• The majority were nonprofits and artists or individual creative workers.
• Our nonprofit organization is primarily to support artists.

Committee: House Joint Committee on the Arts

Summary: The Joint Committee on the Arts held an informational hearing on California’s first sector-specific creative economy strategic plan, “California’s Future Is Creative,” developed under AB 127 and related legislation. Chair Allen framed the plan as a response to California’s large but vulnerable creative economy, citing workforce losses, federal funding headwinds, and the need to support artists, cultural organizations, public media, museums, cultural districts, and film/TV production. He also highlighted budget asks including support for California Humanities, museums, public media, cultural districts, a post-production incentive proposal (AB 2319), and funding to implement the strategic plan. California Arts Council Director Danielle Brazel, Institute for the Future’s Rachel Hatch, CDE’s Allison Frenzel, and CWDB’s Michael Weoff described the planning process, which included a 30-plus-member work group, interagency coordination, and a phased approach from framework development to implementation and evaluation. They identified major forces shaping the sector over the next decade, including AI, climate disruption, affordability, access to capital, and social cohesion, and outlined six action areas: workforce preparation, business stabilization, cultural identity/tourism, cross-sector incentives, ROI/data tracking, and state capacity/infrastructure. Members and panelists repeatedly emphasized that the plan must be resourced and integrated across agencies rather than left siloed. A second panel of practitioners and advocates focused on workforce pathways and local implementation. Ricarlo Handy described the Handy Foundation’s registered apprenticeship pipeline into film and TV jobs and argued that current data systems undercount gig, 1099, and LLC-based creative work. Joanna Reynolds discussed Arts for LA’s Creative Jobs Collective, which aims to create 10,000 living-wage creative jobs in Los Angeles County by 2030, while Alejandro Gutierrez Chavez urged embedding artists in health, aging, and behavioral health systems as community problem-solvers. Roxanne Messina Kaptur spoke about the need to normalize arts careers and expand residency and school-based models. Senator Rubio, who joined later, shared her own arts and teaching background, supported arts access in schools and small theaters, and raised concerns about AI, asking how schools and educators can adapt. In the final panel, Rebecca Ratzkin reported on 26 statewide town halls with more than 1,100 attendees, which confirmed support for the plan but also highlighted needs for better information access, new financial models, stronger definitions and data, and more partnerships. Julie Baker of California for the Arts and California Arts Advocates urged sustained public funding, saying the plan is actionable only if the Legislature and administration provide resources, including increased California Arts Council funding and support for implementation. No formal votes were taken; the hearing was informational and concluded with calls for continued legislative and cross-agency collaboration.

Transcript Highlights:

• its passage, only two nonprofit organizations have filed a Form 807 report.
• This bill will ensure that travel paid for by nonprofit organizations is transparently reported.
• Since the requirement took effect in 2016, only a small number of nonprofits have ever filed.
• This bill will ensure that travel paid for nonprofit by nonprofit organizations is transparently reported
• Since the requirement took effect in 2016, only a small number of nonprofits have ever filed.

Committee: House Elections

Transcript Highlights:

• We had a nonprofit that came and asked for state dollars, and I looked at their 990.
• We got nonprofits doing better than food banks, right?
• As your nonprofit and really truly pursuing the mission that you're given.
• We got nonprofits doing better than food banks, right? There you go.
• We got nonprofits doing better than food banks, right? Food shelves, yeah, I know.

Transcript Highlights:

• So it gives these local nonprofits the flexibility to continue serving us.
• That limits the number of times any one particular nonprofit could do fundraising?
• We are the nonprofit trade association for our Washington state wine industry.
• We are the nonprofit trade association for our Washington state wine industry.
• tax preferences for other nonprofits.

Summary: House Finance heard testimony on several tax and local government bills. HB 2278 would remove the July 1, 2027 expiration on the additional $3-per-room-night tourism promotion area lodging charge; supporters from destination marketing organizations said the revenue has produced strong returns for tourism and events, while questions were raised about how the local ordinances would continue. HB 2583 would lower the population threshold for cities to impose a higher lodging tax and expand authority for public facilities districts; the sponsor and Vancouver supporters said it would help fund a proposed performing arts center and other tourism investments, while hospitality, short-term rental, and some local advocates raised concerns about stakeholder input, equity, and whether the bill was too broad. HB 2224 would change how a city forming a single-city fire protection district handles levy reductions and would exempt part of one levy from the local tax limit; city and firefighter groups supported it as a needed tool for fire and EMS funding, while hospital districts and tax opponents warned about prorationing, governance, and higher taxes. HB 2325 would create a statewide tourism self-supported assessment program funded by participating tourism businesses; supporters from tourism, hospitality, wine, and brewing groups said it would provide a competitive, industry-driven statewide marketing program, while members questioned impacts on specific communities and the need for broader local benefits. HB 2431 would expand from 15 to 50 days the amount of fundraising activity allowed in nonprofit public assembly halls and meeting places, and the Grange supported it as a practical way to keep community halls open. After public testimony, the committee moved into executive session and advanced three bills. HB 2584, a sales and use tax exemption for qualifying farm equipment sold to eligible farmers, passed 14-0 with one excused. HB 2610, which modifies the property tax exemption for nonprofit homeownership development, also passed 14-0 with one excused. HB 2615, which codifies the voluntary disclosure tax program and authorizes temporary tax amnesty, likewise passed 14-0 with one excused. The chair also announced a deadline for amendments on items to be acted on the following day.

Transcript Highlights:

• in House Bill 2081, codifying much of our guidance, but also extending the B&O tax deduction to nonprofits
• I'm hearing from school districts and a lot of nonprofit organizations that are saying they're getting
• I'm hearing from school districts and a lot of nonprofit organizations that are saying they're getting
• So that is just the nature of Title 82: nonprofits, government, everyone pays those taxes.
• From nonprofits large and small, from Aberdeen to Spokane, as well as independent teaching artists.

Summary: The House Finance Committee held a work session that began with welcoming new member Rep. Janice Zahn, who introduced herself as representing the 41st Legislative District. The Department of Revenue then gave an update on the Antio-related legislation following the Washington Supreme Court decision and the 2025 session changes. DOR explained its voluntary disclosure program and the new expanded voluntary disclosure agreement for taxpayers with unreported investment income, including broader eligibility and interest/penalty relief, but said utilization has been minimal so far because additional implementation questions remain unresolved. The committee next received the annual update on the Working Families Tax Credit. DOR reported record participation in 2025, with about $205 million refunded through October and a major increase in applications after TurboTax added the credit to its filing software. Officials said most dollars went to households with children, outreach efforts remained important, and community partners and state agencies helped increase uptake. Members focused heavily on fraud concerns, especially tax preparers allegedly filing claims without applicants’ knowledge or diverting refunds; DOR said it is using fraud detection tools, training preparers, and trying to make applicants whole, but current law does not provide direct penalties against preparers. The final portion covered implementation of engrossed substitute Senate Bill 5814, which expanded sales tax to certain services. DOR described the new tax framework, its guidance process, and the large volume of ruling requests and outreach since the law took effect October 1. Committee members asked about fiscal assumptions, the scope of taxable services, and whether the department had revised its implementation estimates; DOR said the fiscal note assumed broad application absent explicit exemptions and that no expenditure revision had been made. In stakeholder testimony, Expedia and T-Mobile argued the law creates complexity and competitive disadvantages for Washington businesses, while a construction training provider said the tax raises tuition for workers seeking required certifications. School and nonprofit representatives said the tax will increase costs for special education services, arts programming, and other public-facing activities, and urged exemptions or further legislative fixes. The chair closed by noting the committee would revisit 5814 in the next session and then adjourned the meeting.

Transcript Highlights:

• We're a nonprofit advocate for Minnesota residential energy consumers.
• </c><00:32:21.159><c> so</c> Community Action uh nonprofit so Community Action uh nonprofit so Lutheran
• , and are we contracting with a lot more nonprofits and the NGOs, which I define as nonprofits, and the
• , and are we contracting with a lot more nonprofits and the NGOs, which I define as nonprofits, and the
• </c><01:09:02.000><c> that</c> door open for a new popup nonprofit that door open for a new popup nonprofit

Committee: Senate Energy, Utilities, Environment, and Climate

Transcript Highlights:

• I’m Rachel Hatch, Chief Impact Officer at Institute for the Future, and we’re a nonprofit based in Palo
• Through my work collaborating with artists, nonprofits, schools, healthcare systems, and universities
• It was a majority of nonprofits and artists or individual creative workers.
• Our nonprofit organization is primarily to support artists.
• This could give the state a better sense of the individual artist and nonprofit Grant applications.

Committee: Senate Joint Committee on the Arts

Transcript Highlights:

• </c><00:15:41.959><c> housing</c> this does include nonprofit housing this does include nonprofit housing
• La a little bit about the developers and nonprofits that work in this space. Ms.
• </c><00:25:58.840><c> mission-driven</c> represent nonprofit mission-driven represent nonprofit mission-driven
• AICHO is a nonprofit organization located in Duluth.
• </c> known as AO U AO is a nonprofit known as AO U AO is a nonprofit organization<01:04:49.240><c> located

Committee: Senate Housing and Homelessness Prevention