HB 1517
In CommitteeHouse
Digital equity/revenue
Providing a revenue stream to fund digital equity programs.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill imposes a $2 tax on most smart wireless devices (like phones and laptops) priced over $250 in Washington, directing the revenue to fund digital equity programs—including device distribution, broadband access, and digital skills training—for underserved communities. It also strengthens tax enforcement for unremitted taxes and creates a new account to support K–12 and college technology initiatives.
- Imposes a $2 tax on each smart wireless device (e.g., smartphones, laptops, tablets) sold retail in Washington for $250 or more.
- Requires sellers to collect the tax from buyers and remit it to the state; failure to do so is a gross misdemeanor and may result in personal liability.
- Deposits tax revenue into the State Digital Equity Account, with 30% transferred quarterly to a new Learning Device and Technology Account for K–12 and higher education use.
- Amends existing tax collection laws to clarify personal liability for responsible individuals (e.g., CEOs, CFOs) of businesses that fail to remit trust fund taxes—including this new tax.
- Creates a new Learning Device and Technology Account to fund student devices, digital skills training, and technology support in schools and colleges.
- Requires the Joint Legislative Audit and Review Committee to evaluate the effectiveness of digital equity programs by 2030, with a final report due by January 1, 2032.
Who is affected
- Buyers of smart wireless devices — Consumers who buy smart wireless devices (e.g., smartphones, laptops, tablets) priced over $250 will pay an additional $2 tax at the time of purchase.
- Retail sellers of smart wireless devices — Retailers who sell smart wireless devices in Washington must collect the $2 tax from buyers and remit it to the state; failure to do so can result in criminal penalties or personal liability.
- Public agencies and educational institutions — State agencies, schools, community colleges, and tribal groups will receive funding to expand digital access, distribute devices, provide digital skills training, and support cybersecurity for vulnerable populations.
- Communities facing digital inequity — Vulnerable populations—including older adults, veterans, rural residents, low-income households, people with disabilities, and non-English speakers—will benefit from expanded digital equity programs funded by the tax.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The bill creates a dedicated revenue stream—$25–30M annually—with 30% allocated to the Learning Device and Technology Account, directly funding student devices, digital skills training, and technology support in K–12 and higher education, especially benefiting low-income, rural, and first-generation students.
EducationPeopleRef: Sec. 3; Sec. 6; Sec. 8The tax funds digital equity programs targeting high-risk populations—including veterans, older adults, people with disabilities, and rural residents—by expanding access to devices, broadband, and cybersecurity tools, directly improving access to emergency services, telehealth, and benefit programs.
Public SafetyPeopleRef: Sec. 3; Sec. 5; Sec. 9By funding digital inclusion initiatives, the bill helps expand telehealth access for vulnerable groups (e.g., seniors, rural residents), addressing a key barrier to care—especially for the 41% of Washingtonians over 65 who lack internet access.
HealthcarePeopleRef: Sec. 3; Sec. 5; Sec. 9The bill supports adult basic education and digital literacy through community college and state agency programs, helping non-English speakers and low-literacy residents gain skills needed for employment and civic participation.
EducationPeopleRef: Sec. 3; Sec. 5; Sec. 9The bill’s structure ensures quarterly transfers to the Learning Device and Technology Account, creating predictable, dedicated funding for schools and colleges—reducing reliance on volatile local levies and supporting equitable resource distribution across districts.
Local GovernmentPeopleRef: Sec. 6; Sec. 8
Potential Concerns (5)
The $2 tax on smart wireless devices priced over $250 adds a direct out-of-pocket cost to consumer purchases, affecting all buyers regardless of income—though lower-income households spend a higher share of income on such items, making the tax regressive in practice.
FinancialRef: Sec. 3(1)The bill expands personal liability for corporate officers (CEOs, CFOs) for unremitted trust fund taxes—including this new tax—potentially chilling small business formation and increasing compliance costs for employers, especially those with limited legal or financial expertise.
Business & EmploymentPeopleRef: Sec. 4(2), (3); Sec. 6(3)(a)The tax may reduce disposable income for low- and middle-income households, many of whom rely on smartphones and laptops for housing-related services (e.g., online applications, utility payments, lease agreements), indirectly increasing housing instability risk.
HousingPeopleRef: Sec. 4(1), (4); Sec. 3(1)The $2 tax may discourage device upgrades among vulnerable populations (e.g., seniors, people with disabilities), limiting access to emergency alert systems, telehealth, and digital safety tools—especially in rural or underserved areas.
Public SafetyPeopleRef: Sec. 3(1)The bill’s expanded trust fund tax enforcement may disproportionately burden small retailers and sole proprietors who lack dedicated accounting staff, increasing administrative burden and risk of accidental noncompliance and penalties.
Business & EmploymentLean peopleRef: Sec. 4(3); Sec. 6(3)(a)
Who Is Most Affected
Low- and middle-income households face a $2 per-device cost, but gain long-term access to subsidized devices, broadband, and digital training—net positive if they qualify for programs. However, those above income thresholds for aid bear the full cost with no offset.
Retailers face new collection and compliance obligations, with personal liability exposure for officers—increasing administrative burden. However, the tax is straightforward to collect and administer, and the broader economic benefits of digital equity may support long-term demand for devices.
Public agencies (e.g., OSPI, SBCTC, Department of Commerce) gain new, dedicated funding for digital equity initiatives, enabling expanded device distribution, cybersecurity, and training—especially for underserved populations.
Vulnerable populations—including seniors, veterans, rural residents, people with disabilities, and non-English speakers—are primary intended beneficiaries of digital equity programs, with direct gains in access to health, education, and civic services.
Small business owners (especially sole proprietors and micro-businesses) face increased compliance risk due to expanded trust fund tax liability, but benefit indirectly from improved digital infrastructure and workforce skills in their communities.