The bill seeks to enhance the administration of tax preferences in Washington by implementing recommendations from the tax preference performance review process. It aims to eliminate obsolete tax preferences, clarify legislative intent, and ensure that existing exemptions align with public policy objectives. Key provisions include the removal of outdated tax exemptions related to transportation and agricultural commodities, while new language is added to improve clarity and facilitate regular evaluations by the joint legislative audit and review committee. The legislation emphasizes the importance of a fair tax system that adequately funds essential public services and provides necessary assistance to vulnerable populations.

Additionally, the bill introduces specific tax rates for various sectors, including a 0.75 percent rate for nonprofit hospitals and a 0.484 percent rate for businesses involved in inspecting and storing canned salmon. It also establishes a tiered tax structure for businesses not explicitly taxed under other sections, with provisions for tax reductions for manufacturers of commercial airplanes. The bill modifies definitions related to retail sales and manufacturing, clarifies tax obligations for health maintenance organizations, and outlines requirements for low-income housing developments. Overall, the legislation aims to streamline tax regulations, enhance transparency, and support the growth of key industries while ensuring compliance with updated tax obligations.

Statutes affected:
Original Bill: 82.16.050, 82.04.260, 82.32.534, 82.04.4461, 82.04.110, 82.04.120, 82.04.43395, 74.60.010, 82.12.022, 82.21.040, 82.23A.030, 82.29A.130, 82.45.010, 82.45.030, 82.64.030, 84.36.010, 84.36.030, 82.04.29004, 82.04.4451, 82.04.540, 82.04.620, 82.04.051, 82.04.257, 82.32.080, 82.04.29002, 82.04.297, 82.04.360, 82.04.43396, 82.04.280, 82.48.030, 82.62.030, 82.85.010, 82.85.020, 82.85.040, 82.04.43391, 82.08.0262, 82.12.0254, 82.04.627, 82.16.020