HB 2175

In Committee

House

Free DME providers/tax

Exempting providers of free durable medical equipment from retail sales and use tax for certain items.

Introduced (completed)
2
Committee (current stage)
3
Floor Vote (not started)
4
Opposite Chamber (not started)
5
Governor (not started)
6
Signed (not started)

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.

Introduced: January 11, 2026

Last Action: February 4, 2026

Status: H Rules R

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AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.

People & CommunitiesPeople-leaningCorporate & Wealthy Interests

This bill exempts qualifying nonprofit providers of free durable medical equipment from paying retail sales and use tax on items they need to operate and deliver care — such as wheelchairs, walkers, or related supplies — as long as they provide equipment at no cost to patients. The exemption is temporary and will expire in 2037 unless extended based on a legislative review of its impact.

Exempts retail sales and use tax for items reasonably necessary for free durable medical equipment (DME) providers to operate and deliver health care.
Defines 'free DME provider' as a licensed nonprofit that is federally tax-exempt under 501(c) and does not charge patients for DME provided.
Applies the exemption to both retail sales tax (chapter 82.08 RCW) and use tax (chapter 82.12 RCW).
Sets a sunset date of January 1, 2037, unless the legislature extends it based on a review showing increased DME provision.
Requires the Joint Legislative Audit and Review Committee (JLARC) to review whether the exemption increased free DME services and report findings to the legislature by 2031.

Who is affected

Free Durable Medical Equipment Providers — Nonprofit organizations that provide durable medical equipment to patients at no charge may avoid paying retail sales and use tax on items they need to operate and deliver care, such as walkers, wheelchairs, or related supplies.
Patients Receiving Free DME Services — Patients served by qualifying nonprofits may benefit from expanded access to essential medical equipment, as providers may redirect saved tax dollars into more services or lower operational barriers.
State of Washington (Treasury/Department of Revenue) — The state may experience a small reduction in tax revenue due to the exemption, though the bill includes a requirement for periodic review to assess impact and potential extension.

Effective: January 1, 2027Fiscal impact: The bill may reduce state tax revenue by exempting qualifying nonprofits from retail sales and use tax on certain items used to provide free durable medical equipment; the exact impact depends on how many providers qualify and how much they spend annually on exempt items. A review is required by 2031 to assess whether the exemption led to increased service delivery.

Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 20, 2026, 2:59 AM

Pro/Con Analysis

Potential Benefits (2)

By exempting qualifying nonprofits from sales/use tax on essential DME (e.g., wheelchairs, walkers), the bill lowers operational costs — enabling providers to expand free services to low-income, disabled, or uninsured patients who otherwise could not afford equipment.
HealthcarePeopleRef: Sec. 1(1), Sec. 2(1)
The JLARC review requirement (due 2031) creates accountability to assess whether the exemption actually increased DME access — a rare example of evidence-based policy design that prioritizes real-world outcomes over ideological assumptions.
HealthcarePeopleRef: Sec. 3(5), Sec. 1(3), Sec. 2(3)

Potential Concerns (3)

The state will lose sales and use tax revenue on items purchased by qualifying nonprofits, reducing funds available for public services like education, healthcare, and transportation — a cost borne disproportionately by everyday Washingtonians who rely on those services.
FinancialPeopleRef: Sec. 1(1), Sec. 2(1)
The bill ties extension of the exemption to a legislative review showing *increased* DME provision — but does not guarantee expanded access; if providers do not increase services (e.g., due to administrative burden or lack of demand), the exemption yields no public health benefit despite lost revenue.
Public SafetyLean peopleRef: Sec. 3(4)
The exemption is framed as tax relief for 'businesses or individuals' (per RCW 82.32.808(2)(e)), but nonprofits are not businesses — this mischaracterization may set precedent for broader tax preferences that favor institutional actors over true small-scale service providers.
Business & EmploymentLean peopleRef: Sec. 3(2)

Who Is Most Affected

Free Durable Medical Equipment ProvidersPositive Impact
Nonprofit DME providers (e.g., community health centers, disability advocacy orgs) will save on procurement costs — potentially enabling expansion of free services to vulnerable populations. However, small nonprofits may lack resources to navigate licensing/tax exemption compliance, limiting participation.
Patients Receiving Free DME ServicesPositive Impact
Low-income, disabled, or uninsured patients served by qualifying nonprofits stand to gain direct access to essential medical equipment at no cost — improving mobility, independence, and health outcomes. But impact depends on provider capacity to scale up services.
State of Washington (Treasury/Department of Revenue)Negative Impact
State Treasury loses sales/use tax revenue — estimated in the hundreds of thousands annually if dozens of nonprofits qualify. This reduction could strain public budgets over time, especially if the exemption is extended in 2037 without offsetting revenue.
For-Profit Durable Medical Equipment SuppliersMixed Impact
For-profit DME suppliers (e.g., medical equipment retailers) may face competitive pressure if nonprofits expand services without tax costs — though most serve different patient segments (insurance-based vs. free), so direct harm is unlikely.
Local Government EntitiesMixed Impact
Local governments (counties, cities) may see indirect benefits if expanded free DME reduces emergency room visits or hospitalizations — but they gain no direct revenue share from the exemption and bear no cost burden.