This bill establishes a work group to study the taxation of investment income under RCW 82.04.4281, in response to uncertainties arising from a recent state supreme court decision. The legislature aims to delay any changes to the taxation of investment income deductions until clearer definitions or standards can be developed. The bill includes a provision that prohibits the Department of Revenue from assessing business and occupation tax on the investment income of non-banking entities until July 1, 2026, ensuring that individuals are not penalized during this period of uncertainty.

The work group, facilitated by the Department of Revenue, will consist of various representatives, including those from financial management, investment services, nonprofit organizations, and business associations. It is tasked with providing recommendations to the legislature by November 30, 2025, to clarify the existing statute regarding investment income deductions. The work group is required to meet regularly and will expire on November 30, 2026. The bill emphasizes the urgency of the matter, declaring it necessary for the immediate preservation of public peace, health, or safety, and takes effect immediately.