The bill establishes a business and occupation tax deduction for payment card processors while increasing the tax rate for their activities to 3.1 percent. 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 this new tax treatment is warranted due to the unique nature of payment card processing and clarifies that it will not affect the taxability of prior periods. Additionally, it amends RCW 82.04.290 to detail exclusions for transactions involving affiliated financial institutions and modifies definitions related to payment processing.

Furthermore, the bill introduces a workforce education investment surcharge for certain advanced computing businesses, allowing the department to require disclosures from these entities. A penalty of 50% of the total surcharge owed will be imposed on any affiliated group found to have intentionally evaded the surcharge. The bill defines "select advanced computing business" and specifies that revenues from the surcharge will go into the workforce education investment account. It also states that existing laws, RCW 82.32.805 and 82.32.808, do not apply to this act and sets an effective date of January 1, 2026, while increasing the revenue threshold for applicable businesses from $25 billion to $25,000,000,000.

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