The proposed bill seeks to modernize Washington's tax code to align with the state's changing economy, particularly by updating excise taxes on select services and nicotine products. It aims to enhance funding for public schools, health care, and social services through revised tax revenues. Key provisions include extending the retail sales tax to various services such as information technology consulting and custom software development, while repealing outdated exemptions. The bill also introduces new definitions for taxable services and mandates a one-time prepayment of state sales tax collections for certain large businesses, ensuring a fair competitive market for new nicotine products.

Additionally, the bill amends existing laws to broaden the definition of "retail sale" to encompass charges for software access and use, and clarifies the scope of "data processing" activities. It removes exclusions related to digital automated services, updates definitions for digital goods, and expands the definition of tobacco products to include all nicotine-containing items. The legislation also outlines the assessment and payment processes for taxes, including a variable interest rate on unpaid taxes and penalties for non-compliance. Overall, the bill aims to create a more equitable tax framework that reflects current market practices and supports essential services for Washington residents.

Statutes affected:
Original Bill: 82.04.192, 82.26.010, 82.32.045