Notice of Introduction and Public Hearing for House Bill 1887 - 10 Year Analysis Complete

Office of the Governor / Office of Financial Management sent this bulletin at 02/18/2025 09:06 PM PST

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HB 1887, titled AN ACT Relating to creating a data broker registry for the purpose of imposing a data broker severance tax, has been introduced in the House of Representatives. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal
Year

2026

$478,000

2027

$144,000

2028

$144,000

2029

$144,000

2030

$144,000

2031

$144,000

2032

$144,000

2033

$144,000

2034

$144,000

2035

$144,000

Total:

$1,774,000

Department of Revenue:

This fiscal note only addresses sections 9 through 13 of the bill, which impact the Department of Revenue (department).

CURRENT LAW:

Washington does not tax the collection of data.

PROPOSAL:

The Department of Licensing (Licensing) will create and maintain a registry of data brokers in Washington.

Data brokers will owe a monthly tax on data brokering activities based on the number of Washington residents a data broker collects brokered personal data from within the month. The department will administer this tax.

"Data broker" means any business entity registered with Licensing.

"Data brokering" means collecting, aggregating, analyzing, buying, selling, and sharing brokered personal data, regardless of the relationship between the data broker and the Washington resident.

"Brokered personal data" means any of the following data elements, if organized for sale or licensing to another entity:

- The Washington resident's name or the name of a member of their immediate family or household.

- The Washington resident's address or the address of a member of their immediate family or household.

- The Washington resident's date or place of birth.

- The maiden name of the Washington resident's mother.

- Biometric information about the Washington resident.

- The Washington resident's social security number or the number of any other government-issued identification.

- Other information that, alone or in combination with other information sold or licensed, can reasonably be associated with the Washington resident.

The tax consists of an initial amount plus an additional amount based on the number of Washington residents.

Number of residents tier Initial tax amount Per resident additional tax

0 to 500,000 $0 5 cents per resident in this tier

500,000 to 1,000,000 $25,000 per month 10 cents per resident in this tier

1,000,000 to 1,500,000 $75,000 per month 15 cents per resident in this tier

1,500,000 to 2,000,000 $150,000 per month 20 cents per resident in this tier

2,000,000 to 2,500,000 $250,000 per month 25 cents per resident in this tier

2,500,000 to 3,000,000 $375,000 per month 30 cents per resident in this tier

3,000,000 to 3,500,000 $525,000 per month 35 cents per resident in this tier

3,500,000 to 4,000,000 $700,000 per month 40 cents per resident in this tier

4,000,000 to 4,500,000 $900,000 per month 45 cents per resident in this tier

4,500,000 to 5,000,000 $1,125,000 per month 50 cents per resident in this tier

5,000,000 or more $1,375,000 per month 55 cents per resident in this tier

EFFECTIVE DATE:

The bill's sections impacting the department take effect on January 1, 2027.

ASSUMPTIONS:

- Licensing will maintain a registration database of data brokers and not engage in active enforcement.

- Data brokers may voluntarily participate in database registration.

- The registration of a data broker in the database will count as their licensing in Washington.

- Only data brokers registered with Licensing will owe the tax.

REVENUE ESTIMATES:

The revenue impact of this bill is indeterminate because it is unknown how many data brokers will voluntarily register with Licensing.

Ten-year projection prepared in consultation with the following agencies:

Department of Revenue
Department of Licensing

Bill sponsors and contact information:

Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp

You are receiving this email as a subscriber to the Initiative 960 email list. RCW 43.135.031 (I-960) requires that notices be sent each time a bill that raises taxes or fees is: introduced in either house; scheduled for a public hearing; approved by any legislative committee; or passed by either house of the Legislature.

Please note: This email message was sent from a notification-only address. Please do not reply to this message.

HB 1887, titled AN ACT Relating to creating a data broker registry for the purpose of imposing a data broker severance tax, has been scheduled for a public hearing by the House Committee on Consumer Protection & Business.

Date and Time: 02/19/2025 1:30PM (Subject to change by the Legislature.)
Location: John L. O'Brien Building, House Hearing Rm B and Virtual, Olympia, WA

The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection: