The bill amends RCW 82.04.405 to impose a business and occupation tax on state-chartered credit unions that merge with or acquire a commercial bank. Currently, credit unions are exempt from this tax, but the new provisions will change that starting October 1, 2025. Specifically, if a credit union merges with or acquires a bank regulated by the department of financial institutions, it will no longer qualify for the tax exemption and will be subject to a tax rate of 1.2 percent on its gross income.

The bill introduces a new subsection that outlines these changes, effectively removing the blanket exemption for credit unions in cases of mergers with commercial banks. This legislative change aims to ensure that credit unions that expand their operations through such mergers contribute to the state's tax revenue.

Statutes affected:
Original Bill: 82.04.405