This bill aims to remove a tax exemption related to the warehousing and reselling of prescription drugs in Washington State. It introduces new legal language that defines "warehousing and reselling drugs for human use pursuant to a prescription" and specifies that this activity will now be subject to a tax rate of 0.5 percent on gross income. The bill also reenacts and amends existing tax law under RCW 82.04.280 to include this new category of taxable activity, while repealing RCW 82.04.272, which previously governed the tax on warehousing and reselling prescription drugs.

The legislature emphasizes the need to periodically review and update the state's tax code to ensure it reflects the modern economy and adequately funds essential services. By removing this tax preference, the bill aims to increase revenue for the state's general fund. The new provisions will take effect on January 1, 2027, allowing time for stakeholders to adjust to the changes in tax policy.