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 a clear understanding of the deductibility of investment income, thereby maintaining fairness and stability in tax treatment for similarly situated taxpayers.

Key amendments to RCW 82.04.4281 include the addition of definitions for "factoring," "investment," "lending business," and "security business," which provide clarity on what constitutes investment income and the types of businesses affected by these definitions. The bill also specifies that amounts received from factoring and certain types of loans are not deductible under the investment income category. Importantly, the act is retroactive but does not create a right for refunds on taxes paid for investment income prior to its effective date.

Statutes affected:
Original Bill: 82.04.4281