The bill adds a new section to chapter 82.04 RCW establishing an additional business and occupation tax on persons engaged in operating a social media platform equal to 0.4 percent of the business's gross income taxable under RCW 82.04.290(2), effective January 1, 2026. It exempts organizations that are tax-exempt under 26 U.S.C. §501(c)(3). All receipts from the additional tax are deposited into a newly created youth behavioral health account in the state treasury; money in the account may be spent only after appropriation and only for prenatal-through-25 behavioral health purposes, a telebehavioral health pilot for school-aged youth, and support for specified governor’s office roles related to prenatal-through-25 behavioral health. The act specifies that RCW 82.32.805 and 82.32.808 do not apply to it. This is a tax law change that creates a new targeted B&O tax, establishes a dedicated state account for the revenue, and limits how those funds may be appropriated and used. Affected parties named include operators of social media platforms (except 501(c)(3) entities), the Health Care Authority (to administer and receive funding for the telebehavioral health pilot), and the Office of the Governor (to support prenatal-through-25 behavioral health roles). The bill cites the children and youth behavioral health work group and the Washington thriving prenatal through 25 behavioral health strategic plan as sources of identified needs to be funded. Missing from the provided text are the precise definition of the tax base because RCW 82.04.290(2) is not included here, the exact new section number placed in chapter 82.04, details of the strategic plan and the specified governor’s office roles, and an explanation for why RCW 82.32.805 and 82.32.808 are stated not to apply. The bill was read for the first time in the House on March 18, 2025.

If enacted, companies that operate sites or apps where people register profiles and share content will likely face a new 0.4% business tax on their gross income (measured under RCW 82.04.290(2)) starting January 1, 2026, while organizations that are tax-exempt under federal 501(c)(3) rules would be excluded. The revenue will be collected into a new state “youth behavioral health” account and, subject to future legislative appropriation, is intended to fund prenatal-through-age-25 behavioral health services, a telebehavioral health pilot for school-aged youth run by the Health Care Authority, and support positions in the governor’s office tied to youth behavioral health. Practically, social media operators should expect increased tax costs and new compliance obligations, the Health Care Authority and the governor’s office can expect additional potential funding and program responsibilities, and advocacy groups involved in the children and youth behavioral health work group may see new funding opportunities tied to their priorities. Key details that affect how large the tax bills or program funding will be—most importantly the precise definition of “gross income” under RCW 82.04.290(2), the specific spending priorities from the strategic plan, and why two cited RCW sections are excluded—are not provided in the extracted facts.