The bill aims to enhance the administration of tax preferences in Washington by implementing recommendations from the tax preference performance review process. It seeks to eliminate obsolete tax preferences, clarify legislative intent, and address changes in constitutional law. The legislation acknowledges the existence of 786 tax exemptions that provide significant taxpayer savings, while also recognizing that some exemptions may serve private interests rather than public policy objectives. To improve transparency and accountability, the bill establishes a framework for evaluating tax preferences through the joint legislative audit and review committee and the citizen commission for performance measurement of tax preferences. Key provisions include the repeal of outdated tax preferences and the introduction of new sections to facilitate the evaluation process, emphasizing a fair and balanced tax system that ensures adequate funding for essential public services.

Additionally, the bill amends various tax regulations related to industries such as aerospace, timber, and agriculture. It introduces a new definition for "a significant commercial airplane manufacturer" and establishes specific tax rates for businesses engaged in timber extraction and manufacturing, with rates set to remain in effect until 2045. The bill also modifies tax obligations for health maintenance organizations and introduces a new tax on credit unions merging with banks. Furthermore, it clarifies that gross proceeds from rentals at self-service storage facilities are not considered sales of real estate and establishes penalties for non-compliance. The act is set to take effect on various dates, with most provisions becoming effective on January 1, 2026, while certain sections will take effect on January 1, 2034.

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
Substitute Bill: 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, 82.04.280, 82.48.030, 84.36.133, 82.62.030, 82.85.010, 82.85.020, 82.85.040, 82.04.43391, 82.08.0262, 82.12.0254, 82.04.627, 82.04.390, 82.04.460, 82.04.462
Engrossed Substitute: 82.04.260, 82.32.534, 82.04.4461, 82.04.405, 82.04.29004, 82.04.280, 82.04.390, 82.04.460, 82.04.462
Bill as Passed Legislature: 82.04.260, 82.32.534, 82.04.405, 82.04.29004, 82.04.280, 82.04.290, 82.04.390
Session Law: 82.04.260, 82.32.534, 82.04.405, 82.04.29004, 82.04.280, 82.04.290, 82.04.390