The bill aims to clarify the scope of the investment income business and occupation tax deduction as outlined in RCW 82.04.4281, particularly in light of recent legal uncertainties stemming from the state supreme court's decision in Antio, LLC v. Department of Revenue. The legislature seeks to ensure that taxpayers have clear guidelines regarding the deductibility of investment income, thereby maintaining fairness and stability in tax treatment for similarly situated taxpayers. The bill includes amendments to the existing law, specifically defining terms related to investment income and specifying what constitutes deductible amounts.

Key amendments include the addition of "factoring" to the list of non-deductible amounts under subsection (2)(a), and the introduction of detailed definitions for terms such as "factoring," "investment," "lending business," and "security business." The bill also clarifies that the definitions apply solely to this section and specifies that the act will apply retroactively, although it does not intend to create a right of refund for taxes paid on investment-derived amounts prior to the effective date of the new provisions.

Statutes affected:
Original Bill: 82.04.4281