The proposed bill seeks to modernize Washington's excise taxes on select services and nicotine products to better fund public schools, health care, and social services. It aims to adapt the state's tax code to the evolving service-based economy by extending the retail sales tax to various services, including information technology consulting and custom website development, while repealing outdated exemptions. Key amendments include the modification of RCW 82.04.050 to broaden the definition of "sale at retail" to encompass new categories of taxable services and the introduction of a one-time prepayment requirement for large businesses with significant taxable retail sales.

Additionally, the bill clarifies the definitions of "retail sale" to include charges for software access and customization, as well as digital goods and services. It eliminates previous exclusions related to digital automated services that involved human effort, thereby expanding the scope of taxable digital transactions. The bill also establishes a one-time penalty for taxpayers who fail to meet the prepayment requirement and modifies interest rates applicable to tax liabilities. Overall, the legislation aims to streamline tax collection and ensure compliance while modernizing the legal framework surrounding digital transactions and nicotine product taxation.

Statutes affected:
Original Bill: 82.04.192, 82.26.010, 82.32.045