The bill seeks to enhance funding for public schools, higher education, health care, and social services in Washington by revising the business and occupation (B&O) tax structure. It introduces a uniform B&O tax rate of 0.5 percent for various sectors, including extractors, manufacturers, and retailers, while implementing a temporary surcharge of 0.5 percent on large companies with annual revenues exceeding $250 million. Specific amendments to the Revised Code of Washington (RCW) adjust tax rates in multiple sections, raising rates for certain activities, such as increasing the tax on businesses operating contests of chance from 1.5 percent to 1.8 percent. The bill also allocates a portion of the collected revenues to the workforce education investment account to support educational initiatives.

Additionally, the bill clarifies tax compliance requirements and definitions related to business activities, particularly in the aerospace and timber industries. It establishes new tax rates for specific sectors, such as a 0.5 percent rate for retail sales of tooling for commercial airplane manufacturing, while maintaining existing rates for timber-related activities. The legislation mandates the Department of Revenue to work with a business advisory council to simplify tax compliance and introduces new definitions for financial and investment vehicles. Overall, the bill aims to streamline tax regulations, enhance funding for essential services, and provide clarity on tax obligations and compliance for businesses operating in Washington State.

Statutes affected:
Original Bill: 82.04.230, 82.04.240, 82.04.250, 82.32.534, 82.32.080, 82.04.270, 82.04.280, 82.04.285, 82.04.290, 82.04.4461, 82.04.2906, 82.04.260, 82.04.29004, 82.04.462
Substitute Bill: 82.04.230, 82.04.240, 82.04.250, 82.32.534, 82.32.080, 82.04.270, 82.04.280, 82.04.285, 82.04.290, 82.04.4461, 82.04.2906, 82.04.260, 82.04.29004, 82.04.462
Engrossed Substitute: 82.04.230, 82.04.240, 82.04.250, 82.32.534, 82.32.080, 82.04.270, 82.04.280, 82.04.285, 82.04.290, 82.04.4461, 82.04.2906, 82.04.260, 82.04.29004, 82.04.462
Bill as Passed Legislature: 82.04.230, 82.04.240, 82.04.250, 82.32.534, 82.32.080, 82.04.270, 82.04.280, 82.04.285, 82.04.290, 82.04.4461, 82.04.2906, 82.04.260, 82.04.29004, 82.04.462
Session Law: 82.04.230, 82.04.240, 82.04.250, 82.32.534, 82.32.080, 82.04.270, 82.04.280, 82.04.285, 82.04.290, 82.04.4461, 82.04.2906, 82.04.260, 82.04.29004, 82.04.462