The proposed bill seeks to enhance funding for public schools, higher education, health care, and social services in Washington by adjusting business and occupation tax rates and introducing new surcharges. Key changes include raising the tax rate for various business activities to a uniform rate of 0.5%, and implementing a temporary surcharge on large companies with annual revenues exceeding $250 million. Specific amendments to existing laws, such as RCW 82.04.230 and 82.04.240, reflect these new rates, including an increase in the tax rate for contests of chance from 1.5% to 1.8%. The bill also clarifies tax deductions for certain investments, ensuring alignment with the state's goals of supporting essential services.

Additionally, the bill outlines tax rate adjustments for various sectors, particularly manufacturing and aerospace, with specific provisions for businesses engaged in manufacturing commercial airplanes and tooling. The tax rate for licensed surplus line brokers is adjusted to 0.5%, and a new surcharge of 0.5% on income exceeding $250 million is introduced, effective January 1, 2026. The bill also modifies the tax rates for financial institutions, increasing the rate from 1.2% to 1.5% starting October 1, 2025. Overall, the legislation aims to streamline tax regulations, ensure compliance, and provide necessary funding for critical public services while establishing clear reporting requirements for affected businesses.

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