The bill is designed to provide tax relief for newspaper publishers in Washington State, acknowledging their vital role in fostering journalism and civic engagement. It addresses the significant decline in local newspapers, which have faced financial difficulties and workforce reductions due to the internet's rise. To prevent the expiration of the current business and occupation tax preference for newspaper publishers, set to end on July 1, 2024, the bill introduces a new section to chapter 82.04 RCW that exempts certain amounts received by individuals engaged in printing or publishing newspapers and eligible digital content from taxation. This exemption is contingent upon primary engagement in these activities and includes specific definitions for "eligible digital content."

Additionally, the bill amends existing tax laws to clarify applicable tax rates for various businesses, particularly those involved in timber extraction, manufacturing, and publishing. It establishes specific tax rates for timber and wood products, with rates set until July 1, 2045, and clarifies definitions related to these products. A new tax preference is also introduced to support local journalism, which aims to retain 75 percent of journalism jobs and local news outlets, potentially leading to an extension of the tax preference's expiration date. The act is set to take effect on January 1, 2024, and will expire on January 1, 2034.

Statutes affected:
Original Bill: 82.08.0208, 35.102.150, 82.04.460, 82.04.462
Substitute Bill: 82.04.260, 35.102.150, 82.04.460, 82.04.462
Second Substitute: 82.04.299, 35.102.150, 82.04.460, 82.04.462
Engrossed Second Substitute: 82.04.260, 35.102.150, 82.04.460, 82.04.462
Bill as Passed Legislature: 82.04.260, 35.102.150, 82.04.460, 82.04.462
Session Law: 82.04.260, 35.102.150, 82.04.460, 82.04.462