State lawmakers are considering a new tax on social media platforms to help fund behavioral health care for Washington youth. House Bill 2038, sponsored by state Rep. Lisa Callan, an Issaquah Democrat, would establish a new “Youth Behavioral Health Account” with funding from an additional business and occupation (B&O) tax on businesses operating a social media platform. “We certainly know that social media is ubiquitous in our world today, and that is absolutely true with our youth,” Callan told the House Finance Committee on April 7. She noted that studies have linked social media use among kids and teens to mental health problems such as anxiety and depression.

The bill comes as state lawmakers are grappling with a multi-billion-dollar budget shortfall, with Democrats seeking a slew of revenue options to fund state priorities. Republicans, meanwhile, insist that the budget gap can be closed without raising taxes. Supporters of HB 2038 contend that social media companies are part of the youth mental health crisis, and that this measure would help those businesses contribute to the solution. But opponents have expressed concerns about the bill singling out social media companies, as well as the downstream effects that such a tax could have on the state’s smaller businesses. The additional B&O tax for businesses operating social media platforms, if passed into law, would kick in Jan. 1, 2026. It would not apply to nonprofits that are exempt from federal income taxation.

Dollars generated would be deposited into the new Youth Behavioral Health Account. Expenditures from that account could only be used for youth behavioral health aims, including funding a “Chief Officer of Youth Behavioral Health” position in the Governor’s Office and a pilot program for tele-behavioral health services. Social media platforms under the bill would be defined as an application, internet-based service or website that allows users to register a profile or account to interact with others socially, and that lets them share content such as photos, video, texts, links and audio. The 0.4% tax on the gross income of social media platforms would be on top of any other B&O tax. ‘This bill would save lives’ At 48th place, Washington ranks among the worst states in the nation when it comes to youth mental health, according to Children’s Alliance, a nonpartisan child-advocacy organization.

Kids and adolescents who use social media more than three hours per day face double the risk of experiencing mental health issues, including symptoms of anxiety and depression, according to the office of the U.S. surgeon general. About 46% of teens ages 13 to 17 who were asked about how social media affects their body image reported that it makes them feel worse. On Monday, state lawmakers heard from two grieving fathers who said that social media contributed to the deaths of their sons. “My son is no longer with us, and social media played a devastating role,” said one of the dads, Taj Jensen. Chetan Soni, board president of the Washington Youth Alliance, urged lawmakers to pass the bill. He said he recently met a student who was beginning to exhibit signs of mental health problems, which were compounded by “doomscrolling” on social media.

The student ultimately attempted suicide because she couldn’t get the help she needed, Soni said. “Unfortunately, this is not rare.” “This bill, if passed, would save lives,” Soni said. “We are in a mental health crisis, and the time for new revenue for youth mental health is now.” Others in the tech and business communities, however, opposed the bill. Some said it would violate the Permanent Internet Tax Freedom Act and unfairly target social media companies. Max Martin with the Association of Washington Business said the industry-specific tax measure comes as lawmakers mull some of the largest potential tax bumps in state history. He said that the tax, although geared toward social media platforms, could be passed down to local businesses, including in the form of higher ad prices.

Martin argued that programs to support kids should come from the general fund, “which has seen record revenues.” “We believe those revenues should be the foundation for programs that benefit children and families across Washington,” he said, “not selective taxes on one sector of the economy.”