This bill amends RCW 82.04.050 and creates a new section to make temporary staffing services provided to nonprofit behavioral health entities exempt from retail sales tax. It changes the statutory definitions in subsection (3), defining "temporary staffing services" by reference to RCW 82.04.540 but explicitly excluding staffing services provided to hospitals licensed under chapters 70.41 or 71.12 RCW and excluding staffing services provided to nonprofit behavioral health entities (nonprofits as defined in RCW 84.36.800 that are 26 U.S.C. §501(c)(3) and provide behavioral health services). Legally, the bill is a tax law change that creates an exemption and accomplishes that by modifying existing statutory definitions and exclusions in the retail sales tax statute. It also adds a new section stating RCW 82.32.805 and RCW 82.32.808 do not apply to this act, which is a procedural provision about applicability of those RCW sections. The bill was introduced in the 69th Legislature, 2026 Regular Session and read for the first time on 01/23/26. The provided text is incomplete. The new section’s full text and any effective date or other implementation details are not included, and the amendment to RCW 82.04.050 is shown only in part with additional subsections cut off, so the full scope and interaction of all changes to that section cannot be confirmed from these excerpts.

If enacted, temporary staffing services bought by nonprofit behavioral health providers that qualify as 501(c)(3) nonprofits under the cited state definition would no longer be subject to Washington retail sales tax. That would lower the direct cost of contracting temporary clinical and support staff for these nonprofit behavioral health organizations, and staffing agencies would stop charging and remitting retail sales tax on those specific contracts; hospitals are explicitly not affected by this change. The state would likely see a reduction in sales tax revenue and the Department of Revenue and vendors would need to change how those transactions are treated for tax purposes. Important details are missing from the excerpts: no effective date is shown, parts of the amended section are incomplete, and a new section is created while two RCW provisions are stated not to apply, so the exact timing and full scope of who qualifies and when remain uncertain.