This bill proposes significant changes to the business and occupation tax rates in Washington State, aimed at increasing funding for various programs and services. Key amendments include raising the tax rates for extractors and manufacturers from 0.484% to 0.5324%, and for semiconductor manufacturers and processors from 0.275% to 0.3025%. The retail sales tax will also increase from 0.471% to 0.5181%, while the tax on real estate brokerage services will rise from 1.5% to 1.65%. Additionally, a new tax rate for digital goods and services is introduced, with retail rates increasing from 0.471% to 0.5181% and wholesale rates from 0.484% to 0.5324%. The bill also establishes expiration dates for certain tax provisions, particularly those related to semiconductor manufacturing, which will expire on January 1, 2034, unless specific conditions are met.

Further amendments include increases in tax rates for various sectors, such as insurance producers, nonprofit hospitals, and commercial airplane manufacturers, with specific rates set to change over the coming years. The bill also introduces new tax rates for agricultural and manufacturing sectors, including food products, and adjusts rates for travel agents and tour operators based on their annual taxable amounts. New definitions and clarifications regarding terms like "affiliate" and "control" are included to better understand tax implications. Overall, the bill aims to standardize tax rates across multiple industries while ensuring compliance with new financial requirements and supporting essential state programs.

Statutes affected:
Original Bill: 82.04.230, 82.04.240, 82.04.2404, 82.04.241, 82.04.250, 82.32.534, 18.85.011, 82.04.260, 82.04.263, 82.04.270, 82.04.272, 82.04.280, 82.04.285, 82.04.287, 82.04.290, 82.04.4461, 82.04.2906, 82.04.2907, 82.04.2908, 18.20.020