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 $250,000,000. Specific amendments to existing laws, such as RCW 82.04.230 and 82.04.240, will reflect these new rates, including an increase in the tax rate for contests of chance from 1.5% to 1.8%. The bill emphasizes the importance of these revenues in fulfilling the state's obligation to provide quality education and support services.

Additionally, the bill introduces a new tax rate structure for aerospace product development, establishing a rate of 0.9% until July 1, 2040, and modifies existing tax rates for various sectors, including child care services and intensive inpatient treatment services, which will now be taxed at 0.5%. It also outlines compliance and reporting requirements for businesses, including the need for annual tax performance reports and clarifications on definitions related to tax obligations. The legislation aims to streamline tax administration while ensuring necessary exemptions and adjustments for specific industries, ultimately supporting the welfare of Washington residents.

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