This bill amends various sections of the Revised Code of Washington (RCW) to update tax preferences related to sales and use taxes, particularly focusing on exemptions and credits. It repeals numerous existing laws, including exemptions for the operation of state route No. 16 and sales related to aircraft modification and semiconductor materials. The bill also reenacts and amends definitions, such as "sale at retail," to clarify taxable activities and streamline tax regulations. Notably, it modifies the definition of "retail sale" to include digital goods and services while excluding charges for custom software, and it outlines specific activities classified as retail sales, including recreational activities.

Additionally, the bill introduces new definitions and clarifications regarding manufacturing and processing activities, establishing specific tax rates for various sectors, including aerospace and timber. It removes outdated provisions and updates tax obligations for businesses, while also addressing leasehold interests and property transactions related to low-income housing. The legislation aims to modernize tax regulations, enhance clarity for businesses, and facilitate the development of low-income housing, ensuring compliance with updated tax requirements.

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