House Bill 2713 (H-3262.1) would add a new section to chapter 82.04 RCW creating a 1.0 percent business and occupation tax surcharge on Washington taxable income attributable to operating a "private detention facility." The surcharge would be imposed in addition to all other taxes under chapter 82.04 RCW and would apply beginning July 1, 2026 to persons or entities that operate private detention facilities in Washington and that have annual Washington gross receipts in excess of $1,000,000. The bill references the definition of "private detention facility" in RCW 70.395.020 but does not reproduce that definition in the provided text. The extracted material does not define "Washington taxable income" for this surcharge, explain how income attributable to facility operations is calculated or apportioned, or provide administrative, reporting, collection, enforcement, exemption, or penalty provisions, nor does it show the exact placement or section number of the new provision within chapter 82.04 RCW. The bill was introduced as House Bill 2713 (H-3262.1) in the 69th Legislature, 2026 Regular Session and was referred to the Committee on Finance.

If passed, companies that operate private detention facilities in Washington and that have more than $1,000,000 in annual Washington gross receipts will face an added tax cost starting July 1, 2026: they must pay an extra surcharge equal to 1% of the taxable income tied to running those facilities, on top of whatever business and occupation taxes they already owe. That will likely raise these operators’ ongoing tax bills and increase state tax revenue from this industry. The people most affected are private detention facility operators liable under RCW 70.395.020 who exceed the revenue threshold; they will need to identify and report the portion of their Washington taxable income that comes from operating detention facilities and budget for the additional 1% charge. Key details are unclear from the text provided—specifically the statutory definition of “private detention facility,” how “Washington taxable income” attributable to facility operations is calculated or apportioned, and what reporting or enforcement rules will apply—so the exact compliance and administrative burden is uncertain.