This bill seeks to enhance funding for public services in Washington by modifying the business and occupation (B&O) tax structure. Key changes include increasing the B&O tax rates for sectors such as extractors, manufacturers, and retailers to a uniform rate of 0.5%. A temporary surcharge on large companies with annual revenues exceeding $250 million is also introduced to generate additional revenue for essential services. The bill clarifies the B&O tax deduction for certain investments and allocates generated revenues into the general fund and the workforce education investment account, emphasizing the importance of these funds in supporting education and health services.

Additionally, the bill amends tax rates for various business activities, particularly in the aerospace and timber industries, with specific provisions for compliance and reporting requirements. Notable adjustments include a new tax rate structure for aerospace product development and the maintenance of existing tax rates for timber extraction until 2045. The legislation also introduces a surcharge on businesses with taxable income over $250 million and modifies the tax rate for specified financial institutions. Furthermore, it clarifies definitions related to investment income and mandates the Department of Revenue to provide guidance on compliance, with various effective dates for different provisions.

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