SB 5799
In CommitteeSenate
Youth behavioral health acc.
Establishing the youth behavioral health account and funding the account through the imposition of a business and occupation additional tax on the operation of social media platforms.
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 creates a new tax on social media platforms operating in Washington to fund youth behavioral health services, including telehealth for students, care coordination, and programs outlined in the state’s behavioral health strategic plan. It establishes a dedicated account to hold and spend the revenue for these purposes.
- Creates the youth behavioral health account in the state treasury to hold revenue from a new tax on social media platforms.
- Imposes a 0.4% additional business and occupation (B&O) tax on social media platforms’ gross income from operating in Washington, beginning January 1, 2026.
- Defines a social media platform as an internet-based service that allows users to create profiles, interact socially, and share content (e.g., text, photos, video)—but excludes email, direct messaging, online gaming, and purely transactional or academic sites.
- Requires all tax revenue to be spent only on youth behavioral health services, including the telebehavioral health pilot program (administered by the Health Care Authority), the children and youth multisystem care coordinator (in the Governor’s Office), and services aligned with the Washington Thriving Prenatal through 25 Behavioral Health Strategic Plan.
- Exempts organizations that are tax-exempt under Section 501(c)(3) of the federal internal revenue code from the tax.
Who is affected
- Social media platform operators — Social media platforms that operate in Washington and generate gross income from platform operations (e.g., Meta/Facebook, Snap, TikTok, Instagram, X/Twitter) will pay an additional 0.4% tax on their Washington-sourced gross income from platform operation.
- Youth and young adults (prenatal through age 25) — Children, teens, and young adults up to age 25 who may benefit from expanded behavioral health services, including telehealth access, care coordination, and prevention programs funded by the new account.
- State government agencies — State agencies—including the Health Care Authority, Department of Health, and the Governor’s Office—will receive funding to implement behavioral health programs, run a telehealth pilot for youth, and support care coordination and workforce roles like the children and youth multisystem care coordinator and chief officer of youth behavioral health.
- Behavioral health service providers — Nonprofit organizations that provide behavioral health services to youth may receive funding through state programs to expand access to care.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Creates a dedicated, dedicated-revenue stream to expand youth behavioral health services—including telehealth, care coordination, and prevention programs—targeting a population with high unmet need, especially in rural and low-income communities where services are scarce.
HealthcarePeopleRef: Sec. 2(3)(a)-(c)Funds a telebehavioral health pilot for school-aged youth, which could improve early intervention, reduce school-based crises, and support attendance and academic performance—particularly valuable in districts lacking on-site mental health staff.
EducationPeopleRef: Sec. 2(3)(a)Supports the creation of a Chief Officer of Youth Behavioral Health and multisystem care coordination, which could reduce ER visits, police interventions, and juvenile justice involvement by improving access to preemptive, community-based care.
Public SafetyPeopleRef: Sec. 2(3)(c)Aligns funding with the state’s existing behavioral health strategic plan (prenatal–age 25), enabling coordinated, evidence-based service expansion—especially for marginalized groups (e.g., LGBTQ+ youth, rural teens, low-income families) who face disproportionate barriers to care.
HealthcarePeopleRef: Sec. 2(3)(a)-(c)Exempts 501(c)(3) organizations, protecting nonprofits that operate youth-focused platforms (e.g., mental health advocacy sites, educational tools) from the tax—helping preserve community-based digital services for youth.
Business & EmploymentPeopleRef: Sec. 2(2)
Potential Concerns (5)
Imposes a 0.4% B&O tax on gross income from platform operation, which may reduce profitability for social media companies operating in Washington and could lead to reduced investment, hiring, or local partnerships—though large platforms are likely to absorb the cost or pass it indirectly to users or developers, not small local businesses.
Business & EmploymentIndustryRef: Sec. 2(1)Revenue is dedicated exclusively to youth behavioral health services, but the bill does not guarantee new service capacity—existing providers may be redirected to new funding streams without expanding overall system capacity, and the tax may not fully cover unmet need, especially in rural or underserved areas.
HealthcareIndustryRef: Sec. 2(3)(a)-(c)The tax is levied on platform operators, not local governments, and does not provide direct funding to counties or school districts for implementation—local agencies may face increased administrative burden coordinating with state programs without added staffing or infrastructure support.
Local GovernmentLean industryRef: Sec. 2(3)(a)-(c)The tax is based on gross income, not net profit—this means even unprofitable or marginally profitable platforms (e.g., startups or loss-leading services) would owe tax, potentially discouraging local tech entrepreneurship or innovation in Washington.
FinancialIndustryRef: Sec. 2(1)While the telehealth pilot targets school-aged youth, the bill does not require coordination with school districts or guarantee access in schools—implementation may be fragmented, and students in districts without mental health partnerships may see little benefit.
EducationIndustryRef: Sec. 2(3)(a)-(c)
Who Is Most Affected
Youth and young adults (especially ages 10–25) are the intended beneficiaries of expanded mental health services. Evidence shows rising rates of depression, anxiety, and problematic internet use—particularly among middle and high schoolers—so improved access to care is likely to reduce symptoms, improve school engagement, and prevent crises.
Large social media platforms (e.g., Meta, TikTok, Snap) will pay the tax, but their Washington-based operations are likely a small fraction of global revenue. They may absorb the cost or pass it indirectly (e.g., reduced local partnerships), but the financial impact is modest relative to their scale. Some may reduce Washington presence, but no major platform relies primarily on WA for revenue.
State agencies (HCA, DOH, Governor’s Office) gain new funding and authority to expand youth behavioral health programs. However, success depends on staffing, infrastructure, and interagency coordination—currently limited by workforce shortages and fragmented systems.
Nonprofit behavioral health providers stand to gain new funding streams, especially for telehealth and care coordination. However, competitive grant processes and administrative requirements may favor larger, urban-based organizations, leaving rural and grassroots providers behind.
School districts may benefit indirectly through improved student mental health and reduced crises, but the bill does not mandate or fund school-based implementation—so outcomes depend on local capacity and partnerships with state agencies.