This bill aims to restructure the business and occupation tax in Washington by introducing a new surcharge on high-grossing businesses and financial institutions. Specifically, starting January 1, 2026, a one percent surcharge will be levied on Washington taxable income exceeding $250 million in a calendar year. The bill also amends existing tax provisions for financial institutions, increasing the additional tax rate from 1.2 percent to 1.9 percent for specified financial institutions beginning July 1, 2025. Exemptions from the surcharge include certain taxable incomes and businesses primarily engaged in farming or apiculture.

Additionally, the bill emphasizes the importance of funding for education, public safety, health care, and basic human needs, asserting that the new tax measures are necessary for the state's obligations in these areas. It includes provisions for the effective administration of the tax and mandates that collected taxes be deposited into the general fund. The act is set to take effect on July 1, 2025, with the surcharge on high-grossing businesses commencing on January 1, 2026.

Statutes affected:
Original Bill: 82.04.29004