The bill establishes a business and occupation tax deduction for payment card processors while increasing the tax rate for their activities. It introduces a new section to chapter 82.04 RCW, allowing processors to deduct specific fees, such as interchange and network fees, from their taxable income. The legislation emphasizes that the unique nature of payment card processing justifies this tax treatment and clarifies that the new provisions will not affect the taxability of previous periods. Additionally, it amends RCW 82.04.290 to set a new tax rate of 3.1 percent for these activities and outlines exclusions for transactions involving affiliated financial institutions.

Furthermore, the bill introduces a workforce education investment surcharge for businesses engaged in advanced computing, allowing the department to require disclosures from those involved in this sector. A penalty of 50 percent of the total surcharge owed will be imposed on any affiliated group member found to have intentionally evaded the surcharge. The bill defines key terms related to advanced computing and specifies exemptions for hospitals and certain provider clinics, with revenues from the surcharge directed to the workforce education investment account. It will take effect on January 1, 2026, and certain existing laws will not apply to this act.

Statutes affected:
Original Bill: 82.04.290, 82.04.29004
Substitute Bill: 82.04.290, 82.04.29004
Bill as Passed Legislature: 82.04.290, 82.04.29004
Session Law: 82.04.290, 82.04.29004