This bill aims to increase state funding for higher education by amending RCW 82.04.290, which pertains to the taxation of businesses providing international investment management services and other business activities. The bill proposes to raise the tax rate for certain business activities from 1.75% to 1.8% and introduces a new tax rate of 1.5% for specific entities, including those with gross incomes below one million dollars, hospitals, and those subject to a surcharge under RCW 82.04.299. Additionally, it stipulates that 16.67% of the revenues collected from the higher tax rate will be deposited into the workforce education investment account.

The bill also includes provisions for the administration of the tax rates, requiring businesses claiming the lower tax rate to disclose their affiliates and allowing the department to impose penalties for non-compliance. The effective date for these changes is set for October 1, 2025. Overall, the bill seeks to enhance funding for higher education while ensuring compliance and accountability among businesses subject to these tax changes.

Statutes affected:
Original Bill: 82.04.290