The bill amends various sections of the Revised Code of Washington (RCW) to streamline tax regulations related to sales and use taxes, particularly focusing on exemptions and credits. It introduces a new section that repeals numerous existing laws, including exemptions for the operation of state route No. 16 and sales of tangible personal property for aircraft modification. The bill clarifies definitions and conditions for categorizing retail sales, expanding the definition of "retail sale" to include installation and repair services, while specifying exclusions for custom software and educational services. Additionally, it outlines specific activities classified as retail sales, such as recreational activities, and updates the definition of "manufacturer" to exclude certain agricultural activities.

Furthermore, the bill revises tax rates applicable to various manufacturing activities, establishing preferential rates for specific sectors, including a 0.138 percent rate for certain manufacturing activities and a 0.357 percent rate for significant commercial airplane manufacturers, contingent upon meeting apprenticeship utilization rates. It also introduces new definitions relevant to the timber and paper industries, clarifying terms and updating tax obligations for businesses involved in timber extraction and manufacturing. The bill aims to enhance compliance with tax regulations while promoting clarity on tax obligations and exemptions, particularly in relation to low-income housing developments and the transfer of properties between qualifying grantees.

Statutes affected:
Original Bill: 82.04.110, 82.04.120, 82.04.260, 82.32.534, 82.04.43395, 74.60.010, 82.12.022, 82.21.040, 82.23A.030, 82.29A.130, 82.45.010, 82.45.030, 82.64.030, 84.36.010, 84.36.030