The proposed bill establishes a five percent excise tax on payroll expenses exceeding $125,000 for large operating companies in Washington State, set to take effect on July 1, 2026. The revenue generated from this tax will be directed to the newly created Well Washington fund account, which aims to support essential services such as higher education, healthcare, cash assistance programs, and energy and housing initiatives. The bill also creates a Well Washington Fund Oversight and Accountability Board to ensure proper management of the fund and includes penalties for non-compliance with tax reporting and payment requirements. Employers with total employee wages below $7 million in the prior calendar year will be exempt from this payroll tax.

Additionally, the bill introduces new sections to existing law regarding tax collection, assessments, and appeals related to employer tax obligations. It establishes immediate liability for taxes upon business termination, allows the commissioner to issue orders for delinquent taxes, and outlines procedures for the distraint and sale of property to collect unpaid taxes. Employers will have 30 days to appeal assessments they believe are incorrect, and the bill mandates that all tax, interest, and penalties collected be deposited in the state general fund until July 1, 2027, after which a portion will be allocated to the Well Washington fund account. The legislation also includes provisions for severability and rule-making authority, designating it as the "Well Washington Fund Act."