The bill seeks to enhance the administration of tax preferences in Washington by implementing recommendations from the tax preference performance review process, focusing on transparency and accountability. It proposes the elimination of obsolete tax preferences, clarification of legislative intent, and the introduction of expiration dates for certain exemptions. Key amendments include the reenactment and modification of sections of the Revised Code of Washington (RCW), specifically RCW 82.04.260, and the repeal of outdated provisions such as RCW 82.04.062 and RCW 82.04.44525. The legislation aims to streamline the tax code, create a more equitable tax system, and ensure sustainable funding for essential public services.

Additionally, the bill amends tax regulations related to the aerospace industry and timber extraction, introducing a new tax rate of 0.357 percent for significant commercial airplane manufacturers, contingent upon certain conditions. It establishes tax rates for timber extraction and manufacturing activities, effective until July 1, 2045, and introduces a new tax on credit unions merging with banks. The bill also updates tax obligations for health maintenance organizations and self-funded multiple employer welfare arrangements, while repealing outdated statutes and making corrections to internal references. Notably, it specifies that gross proceeds from real estate sales do not include income from individual storage space rentals at self-service storage facilities, with certain provisions set to take effect in stages starting January 1, 2026.

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