title: RCW 82.94.060

text:
The department must establish a list of qualifying counties, effective July 1, 2022. The list of qualifying counties is effective for a 24-month period and must be updated by July 1st of the year that is two calendar years after the list was established or last updated, as the case may be.
[ 2022 c 257 s 107.]

catchline: List of qualifying counties.


doc_type: statute

jurisdiction: wa

title: RCW 82.94.070

text:
The lessor or owner of a qualified building is not eligible for a deferral unless:
(1) The underlying ownership of the buildings, machinery, and equipment vests exclusively in the same person; or
(2)(a) The lessor by written contract agrees to pass the economic benefit of the deferral to the lessee;
(b) The lessee that receives the economic benefit of the deferral agrees in writing with the department to complete the annual tax performance report required under RCW 82.94.050; and
(c) The economic benefit of the deferral passed to the lessee is no less than the amount of tax deferred by the lessor and is evidenced by written documentation of any type of payment, credit, or other financial arrangement between the lessor or owner of the qualified building and the lessee.
[ 2022 c 257 s 108.]

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Conditions for lessors.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 82.94.080

text:
Chapter 82.32 RCW applies to the administration of this chapter.
[ 2022 c 257 s 109.]

catchline: Applicability of general administrative provisions.


title: RCW 82.94.090

text:
Applications, reports, and any other information received by the department under this chapter, except applications not approved by the department, are not confidential and are subject to disclosure.
[ 2022 c 257 s 110.]

catchline: Applications, reports, and information subject to disclosure.


title: RCW 82.94.900

text:
This act takes effect July 1, 2022.
[ 2022 c 257 s 206.]

catchline: Effective date—2022 c 257.


title: RCW 82.96.005

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Battery electric storage systems" means commercially available technology that is capable of retaining electricity, storing the energy for a period of time, and delivering the electricity after storage by chemical, thermal, mechanical, or other means that has at least 10 megawatts of storage that is not subject to the provisions of chapter 84.12 RCW. "Battery electric storage systems" does not include any form of hydroelectric power. "Battery electric storage systems" does not include a system for which payments in lieu of taxes have been made under RCW 43.52.460.
(2) "Energy storage" means commercially available technology that is capable of retaining electricity, storing the energy for a period of time, and delivering the electricity after storage by chemical, thermal, mechanical, or other means.
(3) "Personal property" has the same meaning as in RCW 84.04.080.
(4) "Qualified renewable energy facility" means an electric generating facility powered by wind or solar energy with alternating current nameplate capacity of at least 10 megawatts that is not subject to the provisions of chapter 84.12 RCW. "Qualified renewable energy facility" does not include a facility for which payments in lieu of taxes have been made under RCW 43.52.460.
(5) "Renewable energy" means energy produced by a solar or wind facility with a nameplate capacity sufficient to generate at least 10 megawatts of alternating current power.
(6) "Renewable energy storage capacity" means the battery storage capacity per megawatt.
(7) "Repowered" means the cumulative rebuild or refurbishment of a majority, or more than half the nameplate capacity, of the qualified renewable energy facility or battery electric storage system due to the facility or system reaching the end of its useful life or useful reasonable economic life as determined by the county assessor. The rebuild or refurbishment does not constitute repowering if it is part of routine major maintenance or the maintenance of or replacement of equipment that does not materially affect the expected physical or economic life of the facility.
[ 2026 c 260 s 101.]
Notes:
Effective date—2026 c 260: "This act takes effect January 1, 2028." [ 2026 c 260 s 307.]
Intent—2026 c 260: See note following RCW 43.63A.770.
Tax preference performance statement exemption—Automatic expiration date exemption—2026 c 260: See note following RCW 82.96.040.

catchline: Definitions. (Effective January 1, 2028.)


title: RCW 82.96.010

text:
(1)(a) For taxpayers granted an exemption under RCW 84.36.680, an excise tax is imposed on the privilege of using qualified renewable energy generating systems used as an electric power source in the state. The rate of the tax is as follows:
(i) $80 per month per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating system that uses solar energy to generate electricity and that was granted an exemption under RCW 84.36.680 for 10 years;
(ii) $75 per month per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating system that uses solar energy to generate electricity and that was granted an exemption under RCW 84.36.680 for 15 years;
(iii) $150 per month per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating system that uses wind energy to generate electricity and that was granted an exemption under RCW 84.36.680 for 10 years;
(iv) $130 per month per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating system that uses wind energy to generate electricity and that was granted an exemption under RCW 84.36.680 for 15 years.
(b) For taxpayers granted an exemption under RCW 84.36.680, a tax is imposed on the capacity of the renewable energy storage system of a qualified renewable energy generating system.
(i) The rate of the tax is $19 per month per megawatt hour of renewable energy storage capacity for exemptions granted under RCW 84.36.680 for 10 years.
(ii) The rate of the tax is $14 per month per megawatt hour of renewable energy storage capacity for exemptions granted under RCW 84.36.680 for 15 years.
(2) To ensure the rate structures reflect changes in technology, capacity, markets incentives, and inflation, the department may recommend to the legislature changes to the production excise tax rates in subsection (1) of this section to ensure a balance between the value of the exemptions granted pursuant to RCW 84.36.680 and the production excise tax rate imposed pursuant to this section. The goal is to optimize revenues for local communities while maintaining a rate and tax incentive program that is attractive to project developers.
(3) For taxpayers not assessed under chapter 84.12 RCW, the county assessor must provide a list of taxpayers granted an exemption under RCW 84.36.680 for the following year, along with any other information required, to the department by August 1st each year.
(4) A taxpayer applying for an exemption under RCW 84.36.680 for the following year must register with the department prior to submitting an application under RCW 84.36.680. If the application for an exemption under RCW 84.36.680 is granted for any calendar year, payment of the taxes imposed under this section are due.
(5) The taxpayer claiming an exemption under RCW 84.36.680 and paying the production excise tax under this section must file an annual attestation in the manner and form prescribed by the department.
(6) The definitions in this subsection apply throughout this section unless the context clearly indicates otherwise.
(a) "Qualified renewable energy generating system" means a set of devices whose primary purpose is to produce electricity by means of any combination of collecting, transferring, or converting renewable energy and that is receiving an exemption under RCW 84.36.680.
(b) "Renewable energy" means energy produced by a solar or wind facility with nameplate capacity sufficient to generate at least 10 megawatts of nameplate capacity of alternating current power.
(c) "Renewable energy storage capacity" means the battery storage capacity per megawatt hour.
(d) "Renewable energy storage system" means battery storage or battery energy storage system that can store renewable energy when production exceeds demand and release energy when energy demand increases.
[ 2023 c 427 s 2.]
Notes:
Tax preference performance statement exemption—Automatic expiration date exemption—Application—2023 c 427: See notes following RCW 84.36.680.

catchline: Tax on renewable energy generation or storage—Rates—Administration. (Effective until January 1, 2028.)


title: RCW 82.96.020

text:
(1) The renewable energy local benefit account is created in the state treasury. All receipts from the production excise tax in RCW 82.96.010 must be deposited in the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used for qualified local counties and qualified school districts.
(2) The total amount appropriated to qualified counties and the qualified school districts within those counties must be in proportion to the amount of production excise tax paid by renewable energy systems located in those counties and must be distributed as follows:
(a) Each qualified county must receive an appropriation equal to 42.5 percent of the production excise tax paid by a renewable energy system located in the county.
(b) Qualified federally recognized Indian tribes must receive an appropriation totaling 15 percent of the production excise tax paid by a renewable energy system impacting the tribes' resources or rights.
(c) Each qualified school district must receive an appropriation from the remaining 42.5 percent of the production excise tax paid by a renewable energy system located in the same county in proportion to the number of students being served by that district.
(3) For the purposes of this section, the definitions in this subsection apply unless the context clearly requires otherwise.
(a) "Qualified county" means a county that has a renewable energy system that receives a tax exemption under RCW 84.36.680 and pays the production excise tax under RCW 82.96.010.
(b) "Qualified federally recognized Indian tribe" means a federally recognized Indian tribe with rights or lands reserved or protected by federal treaty, statute, or executive order that are potentially impacted by a renewable energy system that receives a tax exemption under RCW 84.36.680 and pays the production excise tax under RCW 82.96.010.
(c) "Qualified school district" means a school district that is located in a county that has a renewable energy system that receives a tax exemption under RCW 84.36.680 and pays the production excise tax under RCW 82.96.010.
[ 2023 c 427 s 3.]
Notes:
Tax preference performance statement exemption—Automatic expiration date exemption—Application—2023 c 427: See notes following RCW 84.36.680.

catchline: Renewable energy local benefit account. (Effective until January 1, 2028.)


title: RCW 82.96.030

text:
All of the provisions contained in chapter 82.32 RCW not inconsistent with the provisions of this chapter have full force and application with respect to taxes imposed under the provisions of this chapter.
[ 2023 c 427 s 4.]
Notes:
Tax preference performance statement exemption—Automatic expiration date exemption—Application—2023 c 427: See notes following RCW 84.36.680.

catchline: Administration—Application of chapter 82.32 RCW. (Effective until January 1, 2028.)


title: RCW 82.96.040

text:
(1)(a) Beginning January 1, 2028, a state renewable energy excise tax is imposed and collected on the privilege of using a qualified renewable energy facility for an electric power source in the state. This tax applies to qualified renewable energy facilities:
(i) That begin operation on or after January 1, 2028; or
(ii) For systems in operation prior to January 1, 2028, when one of the following occur:
(A) The repowering of a project; or
(B) The project developer opts into the renewable energy excise tax pursuant to RCW 82.96.060.
(b) Beginning January 1, 2028, a state renewable energy excise tax is imposed and collected on the privilege of using a battery electric storage system. This tax applies to battery electric storage systems:
(i) That begin operation on or after January 1, 2028; or
(ii) For systems in operation before January 1, 2028, when one of the following occur:
(A) The repowering of a project; or
(B) The project developer opts into the renewable energy excise tax pursuant to RCW 82.96.060.
(2) The taxes must be paid monthly in the manner and form prescribed by the department.
(3) The taxes imposed by this chapter are in addition to any taxes imposed upon the same persons under chapter 82.04 or 82.16 RCW.
(4) The moneys from this tax must be deposited into the local investment distribution account created in RCW 82.96.080.
[ 2026 c 260 s 103.]
Notes:
Tax preference performance statement exemption—Automatic expiration date exemption—2026 c 260: "RCW 82.32.805 and 82.32.808 do not apply to this act." [ 2026 c 260 s 303.]
Intent—2026 c 260: See note following RCW 43.63A.770.
Effective date—2026 c 260: See note following RCW 82.96.005.

catchline: State renewable energy excise tax. (Effective January 1, 2028.)


title: RCW 82.96.050

text:
(1) The rates of the state and local renewable energy excise taxes authorized in RCW 82.96.040 and 36.29.220 on qualified renewable energy facilities are as follows:
(a)(i) The state renewable energy excise tax rate is $968 per year per megawatt of nameplate capacity of alternating current power for a qualified renewable energy facility that uses solar energy to generate electricity.
(ii) The local renewable energy excise tax rate is $2,905 per year per megawatt of nameplate capacity of alternating current power for a qualified renewable energy facility that uses solar energy to generate electricity.
(b)(i) The state renewable excise tax rate is $1,200 per year per megawatt of nameplate capacity of alternating current power for a qualified renewable energy facility that uses wind energy to generate electricity.
(ii) The local renewable energy excise tax rate is $3,600 per year per megawatt of nameplate capacity of alternating current power for a qualified renewable energy facility that uses wind energy to generate electricity.
(2) The rates of the state and local renewable energy excise taxes authorized in RCW 82.96.040 and 36.29.220 on battery electric storage system are as follows:
(a) The state renewable energy excise tax is $156 per megawatt-hour of battery electric storage system capacity.
(b) The local renewable energy excise tax is $467 per megawatt-hour of battery electric storage system capacity.
(3) The rates in this section apply for the lifetime of the qualified renewable energy facility or the battery electric storage system or until the qualified renewable energy facility or the battery electric storage system repowers.
[ 2026 c 260 s 105.]
Notes:
Joint legislative audit and review committee—Report—Intent—2026 c 260 s 105: "The joint legislative audit and review committee must review the tax rates contained in section 105 of this act and report to the legislature by October 31, 2031. The report must include:
(1) Estimates of what the taxpayer would have paid over the life cycle of the qualified renewable energy facilities and battery electric storage systems if the property remained subject to property taxes. The estimate must consider assumptions including the cost to construct, federal tax credits, trend factors, depreciation, and the average county tax rates across Washington;
(2) Comparisons to the qualified renewable energy facilities' and battery electric storage systems' economic and tax environments of other states;
(3) An analysis of the taxation of renewable energy related personal property owned by centrally assessed utility systems that are subject to the provisions of chapter 84.12 RCW and recommendations on how qualified renewable energy facilities and battery electric storage systems owned or operated by centrally assessed utilities can be transitioned into the renewable energy excise tax imposed pursuant to this act;
(4) An evaluation of any changes in the average per megawatt construction costs for different types of projects, the value of any federal or state tax incentives, the impact of technology improvements on the costs to construct projects, and any change in the annual project equipment depreciation guidelines compared to the previous five-year period; and
(5)(a) Recommendations, based on the findings, regarding future rate adjustments to ensure that taxpayers, the state, and local taxing districts are not disadvantaged by the renewable energy excise tax when new qualified renewable energy facilities and battery electric storage systems are subject to the renewable energy excise tax.
(b) The report must not recommend changes to the renewable energy excise tax rate for qualified renewable energy facilities and battery electric storage systems that are paying the taxes imposed by this act.
(c) The legislature intends that any future rate adjustments will be announced three years before the effective date of the rate change and that rate changes will not occur before January 1, 2034.
(6) The joint legislative audit and review committee shall collect data from the department of revenue, county assessors, and other relevant entities during the course of its review." [ 2026 c 260 s 108.]
Intent—2026 c 260: See note following RCW 43.63A.770.
Tax preference performance statement exemption—Automatic expiration date exemption—2026 c 260: See note following RCW 82.96.040.
Effective date—2026 c 260: See note following RCW 82.96.005.

catchline: State and local energy excise taxes—Rates. (Effective January 1, 2028.)


title: RCW 82.96.060

text:
(1)(a) A qualified renewable energy facility or a battery electric storage system that commences operation or repowers after July 1, 2026, but before January 1, 2028, may opt into the taxes imposed under RCW 82.96.040 and 36.29.220 and receive a property tax exemption under RCW 84.36.690 if:
(i) The qualified renewable energy facility or battery electric storage system provides to the legislative authority of the county in which the qualified renewable energy facility or battery electric storage system is located notice of its intent to opt into the taxes imposed under RCW 82.96.040 and 36.29.220 by September 1, 2026; and
(ii) The legislative authority of the county in which the qualified renewable energy facility or battery electric storage system is located has authorized the imposition of a local renewable energy excise tax before March 1, 2028.
(b)(i) If a qualified renewable energy facility or battery electric storage system opts into the taxes imposed under RCW 82.96.040 and 36.29.220 pursuant to this subsection (1), then the value of any personal property is exempt from property tax, as provided in RCW 84.36.690, beginning in the calendar year in which the taxes under RCW 82.96.040 and 36.29.220 are first imposed.
(ii) Local property taxes subject to the limitations of chapter 84.55 RCW must be reduced as necessary to prevent the exemption created in (b)(i) of this subsection (1) from resulting in a higher tax rate than would have occurred in the absence of the exemption.
(2) A qualified renewable energy facility or battery electric storage system that submitted a completed application under chapter 43.21C RCW as of November 2025, and commences operation after July 1, 2026, but before December 31, 2034, may opt into the taxes imposed under RCW 82.96.040 and 36.29.220 and receive a personal property tax exemption under RCW 84.36.690.
(a) To opt in, the qualified renewable energy facility or the battery electric storage system must notify the department and county assessor of its intent to opt in by April 30th. Notice must occur in the manner and form required by the department and the county assessor.
(b) The assessment of taxes under RCW 82.96.040 and 36.29.220 and the personal property tax exemption under RCW 84.36.690 apply January 1st of the immediately following calendar year.
(3)(a) A qualified renewable energy facility or battery electric storage system that does not meet the requirements of subsection (2) of this section, and that commences construction, becomes operational, or repowers after January 1, 2028, is subject to the personal property tax exemption in RCW 84.36.690 and the taxes imposed pursuant to RCW 82.96.040 and 36.29.220.
(b) The qualified renewable energy facility or the battery electric storage system must notify the department and county assessor at the time that the facility or system commences construction or repowers. Notice must occur in the manner and form required by the department and the county assessor.
(4)(a) A qualified renewable energy facility or a battery electric storage system which has been in operation for 25 years since the facility or system commenced operation or last repowered, may opt into the taxes imposed under RCW 82.96.040 and 36.29.220 and receive a personal property tax exemption under RCW 84.36.690.
(b) To opt in under this subsection (4), the qualified renewable energy facility or the battery electric storage system must notify the department and county assessor of its intent to opt in by April 30th. Notice must occur in the manner and form required by the department and the county assessor.
(c) The assessment of taxes under RCW 82.96.040 and 36.29.220 and the personal property tax exemption under RCW 84.36.690 apply January 1st of the immediately following calendar year.
(5) The personal property tax exemption in RCW 84.36.690 and the taxes imposed pursuant to RCW 82.96.040 and 36.29.220 automatically apply to a qualified renewable energy facility or a battery electric storage system after the facility or system has operated for 35 years or more, as determined by the county assessor, starting from the date on which the facility or system commenced operation or last repowered.
(6) The county assessor must determine if a qualified renewable energy facility or battery electric storage system meets the requirements of this section.
[ 2026 c 260 s 106.]
Notes:
Intent—2026 c 260: See note following RCW 43.63A.770.
Tax preference performance statement exemption—Automatic expiration date exemption—2026 c 260: See note following RCW 82.96.040.
Effective date—2026 c 260: See note following RCW 82.96.005.

catchline: State and local energy excise taxes—Opt in—Property tax exemption. (Effective January 1, 2028.)


title: RCW 82.96.070

text:
(1)(a) Subject to the conditions in (b) of this subsection, beginning January 1, 2031, the legislative authority of a county may impose a special local renewable energy excise tax if a qualified renewable energy facility or a battery electric storage system is located in:
(i) A local taxing district within the county that imposes an excess levy as authorized pursuant to RCW 84.52.052; or
(ii) A school district that imposes a levy as authorized pursuant to RCW 84.52.053 or 84.52.0531 after January 1, 2028.
(b) The legislative authority of a county may only impose the special local renewable energy excise tax in (a) of this subsection as follows:
(i) If the local taxing district levy is a new levy that was not previously part of the county property tax levy within the previous 10 years, the full value of the new levy may be used in the calculation of the excess levy increment in subsection (2) of this section; or
(ii) If the local taxing district levy or school district levy is a replacement levy for a levy that was part of the county property tax levy at the time of the passage of the replacement levy, or was part of the county property tax levy within the 10 years prior to the passage of the replacement levy, only the increase, if any, levy amount between the existing levy may be used in the calculation of the excess levy increment calculated in subsection (2) of this section.
(2)(a) The applicable local renewable energy excise tax rate established in RCW 82.96.050 must be multiplied by the excess levy increment as provided in this subsection to determine the special local renewable energy excise tax rate.
(b) The rate of the excess levy increment is calculated by dividing the sum of the applicable excess levy amount in dollars by the county and junior taxing district property levy amounts in dollars. This is the excess levy increment unless:
(i) The excess levy increment exceeds five percent and there is only a single excess levy, in which case five percent must be used in the calculation of the special local renewable energy excise tax under this section; or
(ii) Multiple taxing districts impose excess levies, in which case the excess levy increment for all the multiple taxing districts must be combined and may not exceed 10 percent in total.
(c) If a junior taxing district imposing an excess levy is located in more than one county, the calculation in (b) of this subsection must be adjusted by reducing the junior taxing district's regular and excess levies to reflect only the pro rata portion of the junior taxing district regular and excess levies that are located in the county imposing the special local renewable energy excise tax.
(3) The special local renewable energy excise tax rate may be adjusted annually to accommodate new and expiring excess levies and expires at the same time as the corresponding levy.
(4) The special local renewable energy excise tax must be paid at the same time as the local renewable energy excise tax imposed pursuant to RCW 36.29.220.
(5) The proceeds of the special local renewable energy excise tax must be distributed to the taxing districts that are imposing the excess levy. If there are multiple excess levies and the excess levy increment is capped pursuant to subsection (2)(b)(ii) of this section, the distributions must be as follows:
(a) For excess levies authorized at different times, the priority in distributions shall go in order of authorization from first to last; or
(b) For all other instances, the legislative authority of the county must determine the distribution of the special local renewable energy excise tax proceeds.
[ 2026 c 260 s 107.]
Notes:
Intent—2026 c 260: See note following RCW 43.63A.770.
Tax preference performance statement exemption—Automatic expiration date exemption—2026 c 260: See note following RCW 82.96.040.
Effective date—2026 c 260: See note following RCW 82.96.005.

catchline: Special local renewable energy excise tax. (Effective January 1, 2028.)


title: RCW 82.96.080

text:
The local investment distribution account is created in the state treasury. All receipts from the state renewable energy excise tax imposed by RCW 82.96.040 must be deposited into the account. Expenditures from the account may be used for the local investment distributions contained in RCW 43.63A.770 and 43.63A.772.
[ 2026 c 260 s 116.]
Notes:
Intent—2026 c 260: See note following RCW 43.63A.770.
Tax preference performance statement exemption—Automatic expiration date exemption—2026 c 260: See note following RCW 82.96.040.
Effective date—2026 c 260: See note following RCW 82.96.005.

catchline: Local investment distribution account. (Effective January 1, 2028.)


title: RCW 82.96.800

text:
All of the provisions contained in chapter 82.32 RCW not inconsistent with this chapter have full force and application with respect to taxes imposed under this chapter.
[ 2026 c 260 s 109.]
Notes:
Intent—2026 c 260: See note following RCW 43.63A.770.
Tax preference performance statement exemption—Automatic expiration date exemption—2026 c 260: See note following RCW 82.96.040.
Effective date—2026 c 260: See note following RCW 82.96.005.

catchline: Administration—Application of chapter 82.32 RCW. (Effective January 1, 2028.)


title: RCW 82.96.810

text:
The department may adopt such rules in accordance with chapter 34.05 RCW, and prescribe such forms, as it deems necessary and appropriate to implement and administer this chapter.
[ 2026 c 260 s 110.]
Notes:
Intent—2026 c 260: See note following RCW 43.63A.770.
Tax preference performance statement exemption—Automatic expiration date exemption—2026 c 260: See note following RCW 82.96.040.
Effective date—2026 c 260: See note following RCW 82.96.005.

catchline: Rule making. (Effective January 1, 2028.)


title: RCW 82.98.010

text:
The provisions of this title insofar as they are substantially the same as statutory provisions repealed by this chapter, and relating to the same subject matter, shall be construed as restatements and continuations, and not as new enactments.
[ 1961 c 15 s 82.98.010.]

catchline: Continuation of existing law.


title: RCW 82.98.020

text:
Title headings, chapter headings, and section or subsection headings, as used in this title do not constitute any part of the law.
[ 1961 c 15 s 82.98.020.]

catchline: Title, chapter, section headings not part of law.


title: RCW 82.98.030

text:
If any chapter, section, subdivision of a section, paragraph, sentence, clause or word of this title for any reason shall be adjudged invalid, such judgment shall not affect, impair or invalidate the remainder of this title but shall be confined in its operation to the chapter, section, subdivision of a section, paragraph, sentence, clause or word of the title directly involved in the controversy in which such judgment shall have been rendered. If any tax imposed under this title shall be adjudged invalid as to any person, corporation, association or class of persons, corporations or associations included within the scope of the general language of this title such invalidity shall not affect the liability of any person, corporation, association or class of persons, corporations, or associations as to which such tax has not been adjudged invalid. It is hereby expressly declared that had any chapter, section, subdivision of a section, paragraph, sentence, clause, word or any person, corporation, association or class of persons, corporations or associations as to which this title is declared invalid been eliminated from the title at the time the same was considered the title would have nevertheless been enacted with such portions eliminated. This section shall not apply to chapter 82.44 RCW.
[ 1961 c 15 s 82.98.030.]
Notes:
Severability—1967 ex.s. c 149: "If any phrase, clause, subsection or section of this act shall be declared unconstitutional or invalid by any court of competent jurisdiction, it shall be conclusively presumed that the legislature would have enacted this act without the phrase, clause, subsection or section so held unconstitutional or invalid and the remainder of the act shall not be affected as a result of said part being held unconstitutional or invalid." [ 1967 ex.s. c 149 s 64.]
Severability—1965 ex.s. c 173: "If any phrase, clause, subsection or section of this act shall be declared unconstitutional or invalid by any court of competent jurisdiction, it shall be conclusively presumed that the legislature would have enacted this act without the phrase, clause, subsection or section so held unconstitutional or invalid and the remainder of the act shall not be affected as a result of said part being held unconstitutional or invalid." [ 1965 ex.s. c 173 s 32.]
Severability—1965 ex.s. c 141: "If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not affected." [ 1965 ex.s. c 141 s 9.]
Severability—1961 ex.s. c 24: "If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not affected." [ 1961 ex.s. c 24 s 15.]
Severability—1961 ex.s. c 7: "If any provision of this act or the application thereof to any person, firm or corporation or circumstance is held invalid, in whole or in part, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provisions or application and to this end the provisions of this act are declared to be severable.
If any provision of this act shall be declared unconstitutional or ineffective in whole or in part by a court of competent jurisdiction then to the extent that it is unconstitutional or ineffective, such provisions shall not be enforced, nor shall such determination be deemed to invalidate the remaining provisions of this act." [ 1961 ex.s. c 7 s 23.]

catchline: Invalidity of part of title not to affect remainder.


title: RCW 82.98.035

text:
Nothing in chapter 149, Laws of 1967 ex. sess. shall be construed to affect any existing rights acquired or any existing liabilities incurred under the sections amended or repealed herein, nor as affecting any civil or criminal proceedings instituted thereunder, nor any rule or regulation promulgated thereunder, nor any administrative action taken thereunder.
[ 1967 ex.s. c 149 s 63.]

catchline: Saving—1967 ex.s. c 149.


title: RCW 82.98.040

text: See 1961 c 15 s 82.98.040.

catchline: Repeals and saving.


title: RCW 82.98.050

text:
This act is necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions, and shall take effect immediately.
[ 1961 c 15 s 82.98.050.]

catchline: Emergency—1961 c 15.


title: RCW 82A.04.010

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Capital asset" has the same meaning as provided in chapter 82.87 RCW.
(2) "Department" means the department of revenue of the state of Washington.
(3) "Federal adjusted gross income" means adjusted gross income as determined under section 62 of the internal revenue code.
(4) "Individual" means a natural person.
(5) "Internal revenue code" means the United States internal revenue code of 1986, as amended and in effect on January 1, 2026.
(6) "Long-term capital asset," "long-term capital gain," and "long-term capital loss" have the same meanings as provided in chapter 82.87 RCW.
(7) "Pass-through entity" means a partnership, limited liability company, or S corporation, which reports out the distributive share of taxable income to its partners, members, or shareholders for federal income tax purposes.
(8)(a) "Resident" means an individual:
(i) Who is domiciled in this state during the taxable year, unless the individual (A) maintained no permanent place of abode in this state during the entire taxable year, (B) maintained a permanent place of abode outside of this state during the entire taxable year, and (C) spent in the aggregate not more than 30 days of the taxable year in this state; or
(ii) Who is not domiciled in this state during the taxable year, but maintained a place of abode and was physically present in this state for more than 183 days during the taxable year.
(b) For purposes of this subsection, "day" means a calendar day or any portion of a calendar day.
(c) An individual who is a resident under (a) of this subsection is a resident for that portion of a taxable year in which the individual was domiciled in this state or maintained a place of abode in this state.
(9) "Taxable year" means the taxpayer's taxable year as defined under section 7701(a)(23) of the internal revenue code.
(10) "Taxpayer" means an individual receiving income subject to tax under this chapter.
(11) "Washington base income" means federal adjusted gross income as modified under RCW 82A.04.210 through 82A.04.270 and 82A.04.410 through 82A.04.460.
(12) "Washington taxable income" means Washington base income as further modified by RCW 82A.04.310 through 82A.04.360.
[ 2026 c 238 s 101.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Definitions.


title: RCW 82A.04.015

text:
Any term used in this chapter has the same meaning as when used in a comparable context in the internal revenue code, unless a different meaning is clearly required or the term is specifically defined in this chapter.
[ 2026 c 238 s 102.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Undefined terms—Conformity with federal Internal Revenue Code.


title: RCW 82A.04.030

text:
(1) Beginning January 1, 2028, a tax is imposed on the receipt of Washington taxable income. Only individuals are subject to payment of the tax, which equals 9.90 percent multiplied by an individual's Washington taxable income.
(2) If an individual's Washington taxable income is less than zero for a taxable year, no tax is due under this section.
[ 2026 c 238 s 201.]
Notes:
Findings—Intent—2026 c 238: "(1) The legislature finds that the state, through the state's general fund, invests in K-12 education, health care, higher education, other essential governmental services, and the working families' tax credit, all of which help Washingtonians succeed and thrive.
(2) These general fund dollars help the state meet its paramount duty to make ample provision for the education of all children in the state, including children who qualify for special education services, creating the opportunity for each child to succeed in school and achieve success in life. The legislature intends to further support academic success and well-being of our children in K-12 education by providing access to breakfast and lunch for all children served without charge each school day.
(3) The general fund supports health care programs that deliver critical, life-saving medical care, provide support for those with developmental and other disabilities, offers long-term care for the elderly, and protects the long-term health and well-being of the public.
(4) Further, the general fund invests in higher education, including two and four-year colleges, apprenticeships, and other postsecondary education and training programs, ensuring Washington students remain competitive in the workforce and broader economy.
(5) The general fund also invests in human services that provide vital basic-needs assistance to the state's lowest-income households and educate the youngest learners. The legislature intends to further support these young learners through transferring a portion of the revenues from this act to the fair start for kids account, for child care and early learning purposes.
(6) Therefore, the intent of this act is to maintain and preserve essential governmental services for Washingtonians, particularly within K-12 education, health care, higher education, and human services, and support working families by ensuring continued investment in, and expansion of who qualifies for, the working families' tax credit by depositing revenues from this act into the general fund.
(7) The legislature further recognizes that reforming our tax code to be common sense, balanced, and sustainable is essential to the long-term economic success of Washington. The Washington tax structure, developed during the Great Depression, relies heavily on excise and consumption taxes, with consequences for equity, adequacy, and long-term fiscal stability that persist today. The legislature recognizes that more progress is needed for the state to have a fair and balanced tax system that can provide sustainable, ample funding for K-12 education, health care, higher education, human services, and other essential governmental services. Washington's tax system remains the second most regressive in the nation as it asks those with the least to pay the most as a percentage of their income. Low-income Washingtonians pay at least three times more in state and local taxes as a percentage of their income than the state's highest income households.
(8) Further, due to the action of the federal government through the passage of HR 1, Washington's highest-income households are set to receive an average federal tax break of $90,850 while Washington's lowest-income households are set to receive a mere $200, according to the institute on taxation and economic policy. These tax breaks were largely funded through cuts to federal funding in health care and food security programs, negatively impacting Washington's working families.
(9) Thus, the legislature intends to limit the tax established by this act to households with annual adjusted gross income of $1,000,000 or more. Washingtonian households with an annual adjusted gross income of less than $1,000,000 will not owe this tax. As a result, the millionaires' tax is estimated to affect only the wealthiest one-half of one percent of the households in this state, taking a significant step toward reducing the disproportionate reliance on working people to fund K-12 education, health care, higher education, human services, the working families' tax credit, and other essential governmental services to benefit Washingtonians. The application of the tax to households matches the policy of the state's capital gains excise tax and the policy of the property tax exemption for senior citizens, veterans, and people with disabilities.
(10) The legislature further intends to exempt certain sources of income from the tax including, but not limited to, the sale of qualified family owned small businesses in accordance with RCW 82.87.070 and the sale of residential and other real property in accordance with RCW 82.87.050.
(11) It is also the intent of the legislature to rebalance the tax system by reducing taxes on consumers, low and middle-income families, and businesses through small business and other business and occupation tax credits, by exempting from the retail sales tax essential household items such as personal care products, certain over the counter drugs, and diapers, and by providing the tax relief in sections 1101 through 1104 of this act. The legislature further intends that the tax imposed under this act operate together with certain tax reductions and tax credits enacted by this act as an integrated reform of the state tax code, and that repeal or invalidation of section 201 of this act would reinstate certain sales and use tax on items made exempt by this act and repeal working families tax credits and small business tax credits enacted by this act.
(12) The legislature finds that local government revenue sources are limited and unable to keep up with rising costs. The legislature further finds that many of the tax reductions that help Washingtonians have an impact on local government revenues. To offset some of those impacts, the legislature intends to create a city and county fiscal health account for future transfers from the general fund to mitigate a portion of the revenue loss to local government. Such transfers will be unrestricted and available for general use.
(13) Thus, to help meet the state's paramount duty of amply providing every child in the state with an education and supporting the health and well-being of Washingtonians, it is the intent of the legislature, by adopting this act, insofar as possible, to:
(a) Impose a tax on those households with the greatest ability to pay, specifically those earning Washington adjusted gross income during the taxable year of at least $1,000,000;
(b) Make the Washington millionaires' tax law reflect the provisions of the internal revenue code relating to the measurement of adjusted gross income, modified as necessary to achieve the goals and purpose of this act;
(c) Achieve this result by the application of the various provisions of the internal revenue code relating to the definition of income, exemptions and exclusions therefrom, accounting methods, basis, depreciation, and other pertinent provisions, subject to additional exemptions and modifications as provided in this act, resulting in a final amount called "Washington adjusted taxable income";
(d) Impose a tax on residents of this state measured by Washington adjusted taxable income wherever derived and to impose a tax on nonresidents measured by Washington adjusted taxable income from sources within this state; and
(e) Increase state funding for K-12 education in order to improve outcomes for Washington's students by strengthening high quality instruction and expanding student supports." [ 2026 c 238 s 1.]
Effect of invalidation of 2026 c 238 s 201—2026 c 238: "If a court of final jurisdiction invalidates section 201 of this act, sections 1 through 1003 and 1201 through 1209 of this act are null and void in its entirety." [ 2026 c 238 s 1202.]
Automatic expiration date and tax preference performance statement exemption—2026 c 238: "Except as provided in section 902 of this act, RCW 82.32.805 and 82.32.808 do not apply to this act." [ 2026 c 238 s 1206.]
Necessity of act—2026 c 238: "The tax imposed in this act is necessary for the support of the state government and its existing public institutions." [ 2026 c 238 s 1208.]
Intent—Implementation by department of revenue—2026 c 238: "It is the intent of the legislature for the department of revenue to spend appropriated amounts to implement this act regardless of litigation." [ 2026 c 238 s 1209.]

catchline: Tax imposed—Rates.


title: RCW 82A.04.050

text:
(1) Taxes collected under this chapter must be deposited in the state general fund to fund the sales and use tax relief in sections 903 through 908, chapter 238, Laws of 2026, the working families' tax credit program, including its expansion in section 901, chapter 238, Laws of 2026, and the business and occupation tax relief in sections 909 through 911, chapter 238, Laws of 2026, and to make public investments in K-12 education, health care, human services, and higher education.
(2) Beginning July 1, 2029, and each July 1st thereafter, the state treasurer must deposit five percent of the revenues collected pursuant to this chapter during the previous fiscal year into the fair start for kids account created in RCW 43.216.772.
(3) All interest and penalties collected under this chapter must be deposited in the state general fund.
[ 2026 c 238 s 202.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Distribution of tax revenues.


title: RCW 82A.04.110

text:
(1) A resident individual is allowed a credit against the tax imposed under this chapter for the amount of any income tax paid to another state, or political subdivision of the state, on income taxed under this chapter, subject to the following conditions, which must be imposed separately with respect to each taxing jurisdiction:
(a) The credit is allowed only for taxes paid by the individual, or a pass-through entity in which the individual is an owner, to the other jurisdiction on net income from sources within that jurisdiction that is included in the individual's Washington base income; and
(b) The amount of the credit may not exceed the smaller of:
(i) The amount of tax paid to the other jurisdiction on net income from sources within the other jurisdiction; or
(ii) The amount of tax due under this chapter before application of credits allowable by this chapter, multiplied by a fraction. The numerator of the fraction is the amount of the taxpayer's federal adjusted gross income subject to tax in the other jurisdiction. The denominator of the fraction is the taxpayer's total Washington base income. The fraction may never be greater than one.
(2) If the laws of the other taxing jurisdiction contain a provision exempting a resident of this state from liability for the payment of income taxes on income earned for personal services performed in such jurisdiction, then the department may enter into a reciprocal agreement with such jurisdiction providing a similar tax exemption on income earned for personal services performed in this state.
(3) The credit claimed under this section for a taxable year may not exceed the tax otherwise due under this chapter for that taxable year. Unused credit may not be carried forward or backward to another taxable year. No refunds may be granted for unused credit under this section.
(4) For purposes of this section, "state" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, a federally recognized tribe, or any territory or possession of the United States.
[ 2026 c 238 s 203.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Credit—Income taxes due to another jurisdiction.


title: RCW 82A.04.120

text:
(1) Beginning in tax year 2028 with taxes due in 2029, to avoid taxing the same Washington taxable income under the business and occupation tax or public utility tax and the tax imposed under this chapter, a nonrefundable credit is allowed against taxes due under this chapter on income that is also subject to the tax imposed under chapter 82.04 or 82.16 RCW. The credit is equal to the amount of tax paid under chapter 82.04 or 82.16 RCW for income included in both the calculation of the tax paid under chapter 82.04 or 82.16 RCW and the tax imposed under this chapter.
(2) The credit under this section is earned in regard to income reportable for federal income tax purposes and may be claimed against taxes due under this chapter, for the taxable year in which the income is reportable for federal income tax purposes. The credit claimed for a taxable year may not exceed the tax otherwise due under this chapter for that taxable year. Unused credit may not be carried forward or backward to another tax reporting period. No refunds may be granted for unused credit under this section.
[ 2026 c 238 s 204.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Credit—Business and occupation and public utility taxes.


title: RCW 82A.04.130

text:
(1) Beginning in tax year 2028 with taxes due in 2029, a nonrefundable credit is allowed against taxes due under this chapter for the amount of tax imposed on Washington capital gains for the same tax year. "Washington capital gains" has the same meaning as provided in RCW 82.87.020.
(2) The credit claimed under this section for a taxable year may not exceed the tax otherwise due under this chapter for that taxable year. Unused credit may not be carried forward or backward to another taxable year. No refunds may be granted for unused credit under this section.
[ 2026 c 238 s 205.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Credit—Washington capital gains taxes.


title: RCW 82A.04.140

text:
(1) Beginning in tax year 2028 for taxes due in 2029, a nonrefundable credit is allowed against taxes due under this chapter for the amount of the tax expense incurred by a pass-through entity under RCW 82A.04.520 attributable to the owner as provided in RCW 82A.04.520(3). For a resident, the credit under this section must be reduced by the amount of any credit claimed under RCW 82A.04.110 based on the same Washington taxable income.
(2) The credit claimed under this section for a taxable year may not exceed the tax otherwise due under this chapter for that taxable year. Unused credit may not be carried forward or backward to another taxable year. No refunds may be granted for unused credit under this section.
[ 2026 c 238 s 206.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Credit—Pass-through entity tax payments.


title: RCW 82A.04.200

text:
In computing Washington base income for a taxable year, modifications must be made to the taxpayer's federal adjusted gross income as required under RCW 82A.04.210 through 82A.04.270 and 82A.04.410 through 82A.04.460, unless the modification has the effect of duplicating an item of income or deduction. If an item of income is excluded from federal adjusted gross income, it is excluded from the tax under this chapter unless specifically included as provided in RCW 82A.04.210 through 82A.04.310.
[ 2026 c 238 s 301.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Base income—Generally.


title: RCW 82A.04.210

text:
(1) In computing a taxpayer's Washington base income, the taxpayer must deduct from the taxpayer's federal adjusted gross income any long-term capital gains that have been included in computing federal adjusted gross income.
(2) In computing a taxpayer's Washington base income, a taxpayer must add to the taxpayer's federal adjusted gross income any long-term capital losses that have been included in computing federal adjusted gross income.
(3) After making the modifications required under subsections (1) and (2) of this section, in computing a taxpayer's Washington base income, a taxpayer must add to the taxpayer's federal adjusted gross income the amount of Washington capital gains subject to tax under chapter 82.87 RCW for the same taxable year, plus the amount deducted under RCW 82.87.060(1). Under this subsection (3), a taxpayer must not include long-term capital gains or long-term capital losses, from the sales or exchanges exempt under RCW 82.87.050, in the computation of their Washington base income. This subsection (3) applies only to taxpayers owing tax under chapter 82.87 RCW for that taxable year. "Washington capital gains" has the same meaning as provided in RCW 82.87.020.
[ 2026 c 238 s 302.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Base income—Long-term capital gains and losses.


title: RCW 82A.04.220

text:
In computing a taxpayer's Washington base income, the taxpayer must add to the taxpayer's federal adjusted gross income any income that has been excluded under section 103 of the internal revenue code in computing federal adjusted gross income, except interest on obligations of the state of Washington or political subdivisions of the state of Washington.
[ 2026 c 238 s 303.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Base income—State and local obligations.


title: RCW 82A.04.230

text:
In computing a taxpayer's Washington base income, the taxpayer must add to the taxpayer's federal adjusted gross income:
(1) Taxes on or measured by net income which have been deducted under the internal revenue code in computing federal adjusted gross income;
(2) The amount of taxes paid or accrued which have been deducted for federal purposes, but for which either a business and occupation tax credit or public utility tax credit, or both, is allowed.
[ 2026 c 238 s 304.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Base income—State and local taxes.


title: RCW 82A.04.240

text:
In computing a taxpayer's Washington base income, the taxpayer must:
(1) Add to the taxpayer's federal adjusted gross income, any amounts that have been deducted in computing federal adjusted gross income to the extent the amounts have been carried over from taxable years ending before January 1, 2028;
(2)(a) Add to the taxpayer's federal adjusted gross income, any amounts of net operating loss carryover that have been deducted in computing federal adjusted gross income not described in subsection (1) of this section; and
(b) Deduct 80 percent of the amount of net operating loss carryover that has been deducted in computing federal adjusted gross income, to the extent that the loss carryover meets all of the following criteria:
(i) The loss carryover is from losses apportioned to Washington under RCW 82A.04.410 through 82A.04.460;
(ii) The loss carryover is not added to federal adjusted gross income under subsection (1) of this section; and
(iii) The loss carryover is from a previous tax year so long as that previous tax year is after January 1, 2028.
[ 2026 c 238 s 305.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Base income—Carryovers.


title: RCW 82A.04.250

text:
In computing a taxpayer's Washington base income, the taxpayer must deduct, to the extent included, from the taxpayer's federal adjusted gross income, any income derived from obligations of the United States that this state is prohibited by federal law from subjecting to a net income tax. However, the amount deducted under this section must be reduced by any expense, including amortizable bond premiums, incurred in the production of such income to the extent the expense has been deducted in calculating federal adjusted gross income.
[ 2026 c 238 s 306.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Base income—Federal obligations.


title: RCW 82A.04.260

text:
In computing a resident taxpayer's Washington base income, the taxpayer must add to the taxpayer's federal adjusted gross income, all income from a trust treated as a nongrantor trust for federal income tax purposes but funded with an incomplete gift for purposes of section 2511 of the internal revenue code and its accompanying regulations, to the extent the trust income is not otherwise included in the calculation of Washington base income.
[ 2026 c 238 s 307.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Base income—Incomplete nongrantor trusts.


title: RCW 82A.04.270

text:
(1) The following is exempt from the tax imposed by this chapter:
(a) Income derived from the exercise of rights by any member of a federally recognized tribe secured by treaty, executive order, or act of congress;
(b) Income received by any member of a federally recognized tribe, when the individual worked or received income within their own tribe's Indian country;
(c) Income received by any member of a federally recognized tribe that is derived directly from lands or funds held in trust by the secretary of the United States department of interior allotted and restricted Indian lands;
(d) Income derived from a federally recognized tribe, including its subdivisions and entities, when such income is received by a member of a federally recognized tribe or by a beneficiary of an Indian health program pursuant to 42 C.F.R. Sec. 136.12 (2026); and
(e) Any income, payments, benefits, or services, the taxation of which is otherwise exempted or preempted by federal or state law including, but not limited to, sections 139D and 139E of the internal revenue code.
(2) This chapter is not intended to apply to, or impose obligations on, federally recognized tribes or their subdivisions or entities with tribal government headquarters located in the state of Washington.
[ 2026 c 238 s 308.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Base income—Tribal income.


title: RCW 82A.04.310

text:
(1) In computing a taxpayer's Washington taxable income, the taxpayer may deduct from their Washington base income the amount of charitable contributions they claimed for the taxable year under section 170 of the internal revenue code to a qualified organization, up to a maximum deduction of $100,000 per individual, or in the case of spouses or domestic partners, their combined charitable deduction is limited to $100,000, regardless of whether they file joint or separate returns.
(2) For the purposes of this section, "qualified organization" has the same meaning as in RCW 82.87.080.
[ 2026 c 238 s 309.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.


title: RCW 82A.04.320

text:
In computing a taxpayer's Washington taxable income, the taxpayer must add to the taxpayer's Washington base income the taxpayer's distributive share of the tax expense incurred by a pass-through entity under RCW 82A.04.520 to the extent the expense has been deducted in calculating the taxpayer's federal adjusted gross income.
[ 2026 c 238 s 310.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Taxable income—Pass-through entity tax payments.


title: RCW 82A.04.330

text:
In computing a taxpayer's Washington taxable income, the taxpayer may deduct from the taxpayer's Washington base income the amount deposited in a capital construction fund under section 7518 of the internal revenue code if the amount has reduced the taxpayer's federal taxable income for the taxable year.
[ 2026 c 238 s 311.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Taxable income—Capital construction fund for vessel improvements or acquisition.


title: RCW 82A.04.340

text:
In computing a taxpayer's Washington taxable income, the taxpayer must deduct an amount equal to 90 percent of any Washington allocated wagering losses for the tax year. The amount of the losses deducted cannot be more than the Washington allocated wagering income included in the taxpayer's Washington base income. Wagering losses may not be carried forward or backward. The wagering loss deduction must be adjusted for nonresidents as provided in RCW 82A.04.410.
[ 2026 c 238 s 312.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Taxable income—Wagering losses.


title: RCW 82A.04.350

text:
In computing a taxpayer's Washington taxable income, the taxpayer may deduct from the taxpayer's Washington base income the amount of expenditures disallowed pursuant to section 280E of the internal revenue code so long as the expenditures are related to the commercial cannabis activities by a person licensed pursuant to RCW 69.50.325.
[ 2026 c 238 s 313.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Taxable income—Commercial cannabis activities.


title: RCW 82A.04.360

text:
In computing a taxpayer's Washington taxable income, a taxpayer may deduct from the taxpayer's Washington base income a standard deduction of $1,000,000 per individual, or in the case of spouses or state registered domestic partners, their combined standard deduction is $1,000,000, regardless of whether they file joint or separate returns. The amount of the standard deduction must be annually adjusted pursuant to RCW 82A.04.367. The standard deduction must be adjusted for nonresidents as provided in RCW 82A.04.363.
[ 2026 c 238 s 314.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Taxable income—Standard deduction.


title: RCW 82A.04.363

text:
The deduction from Washington base income allowed under RCW 82A.04.360 for individual taxpayers who are not residents of this state for the entire taxable year must be reduced by multiplying the amount of the deduction by a fraction. The numerator of the fraction is the individual's Washington base income. The denominator of the fraction is the individual's federal adjusted gross income from all sources. The fraction may never be greater than one.
[ 2026 c 238 s 315.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Taxable income—Standard deduction—Adjustment for nonresidents.


title: RCW 82A.04.367

text:
(1) Beginning October 2029 and each October of an odd-numbered year thereafter, the department must adjust the standard deduction under RCW 82A.04.360 by multiplying the current standard deduction amount by one plus the percentage by which the most current consumer price index available on October 1st of the current year exceeds the consumer price index for the prior 12-month period, and rounding the result to the nearest $1,000. If an adjustment under this subsection (1) would reduce the standard deduction amount, the department must not adjust the amounts for use in the following year. The department must publish the adjusted standard deduction amount on its public website by October 31st of each year. The adjusted standard deduction amount calculated under this subsection (1) takes effect for taxes due in the following calendar year.
(2) For purposes of this section, "consumer price index" means the consumer price index for all urban wage earners and clerical workers as calculated by the United States bureau of labor statistics or its successor agency.
[ 2026 c 238 s 316.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Taxable income—Standard deduction—Index for inflation.


title: RCW 82A.04.410

text:
(1) For resident individuals, all income must be allocated to this state.
(2) For nonresident individuals, income derived from sources within this state must be allocated to this state. Income derived from sources within this state means:
(a) Wages and other compensation from employment within this state as provided in RCW 82A.04.430;
(b) Compensation attributable to professional athletics as provided in RCW 82A.04.435;
(c) Income of a nonresident student athlete derived from the commercial use of the student athlete's name, image, or likeness as provided in RCW 82A.04.460;
(d) Amounts attributable to any business, trade, profession, or occupation carried on within this state, including an individual's distributive share of income from a pass-through entity operating within this state as provided in RCW 82A.04.420, to the extent determined under RCW 82A.04.440;
(e) Rents, short-term gains, and other amounts attributable to the ownership or disposition of any interest in real or tangible personal property in this state;
(f) Income from intangible personal property, including annuities, dividends, interest, and gains from the disposition of intangible personal property, to the extent that the intangible personal property was employed in a business, trade, profession, or occupation carried on within this state; and
(g) Income received from wagering transactions.
(3) If the nonresident individual performs services in Washington five or fewer days cumulatively in any calendar year, no income must be allocated pursuant to this section. This subsection (3) does not apply to nonresident professional athletes, nonresident student athletes, and nonresident entertainers.
(4) Deductible expenses, capital losses, and net operating losses of a nonresident are based solely on income, gains, losses, and deductible expenses derived from or connected with sources in this state but are otherwise determined in the same manner as the corresponding federal deductions except as provided in this chapter.
(5) Compensation paid by the United States for service in the armed forces of the United States performed in this state by a nonresident does not constitute income derived from sources within this state.
(6) Income earned by a nonresident participating as a keynote speaker, panelist, presenter, moderator, or similar role at a convention trade show or business event held in this state may be excluded if the individual meets the requirements of RCW 82.32.531.
[ 2026 c 238 s 401.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Allocation and apportionment—Generally.


title: RCW 82A.04.420

text:
(1) Income derived from sources within this state include an apportioned share of the individual's distributive share of income, gains, losses, and deductions from pass-through entities that operate in the state, as provided in subsection (2) of this section.
(2) The allowable modifications and credits under this chapter for partners, members, or shareholders of a pass-through entity are computed by including a pro rata share of the Washington base income and the credits allowed under RCW 82A.04.110 through 82A.04.130, if the modification or credit relates to the income of the pass-through entity. Each member's, partner's, or shareholder's pro rata share of a modification or credit is the amount of modification or credit based on the pro rata share of net income or loss on a member's, partner's, or shareholder's federal schedule K-1 form.
(3) For purposes of this section, "pro rata share" means pro rata share as reflected on the member's, partner's, or shareholder's federal schedule K-1 form.
[ 2026 c 238 s 402.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Allocation and apportionment—Pass-through entities—Pro rata share.


title: RCW 82A.04.430

text:
(1) Unless provided otherwise in this chapter, a nonresident individual is subject to tax on the portion of federal adjusted gross income derived from employment within the state of Washington, regardless of the location of the commercial domicile of the employer.
(2) Compensation for services performed by a nonresident as part of their employment must be allocated to this state to the extent such services are rendered within the state. If services are performed both within and outside the state, the compensation must be apportioned based on the ratio of days worked in the state to total days worked, or by another reasonable method approved by the department.
(3) For the purpose of this section, the following definitions apply:
(a) "Compensation" means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services.
(b) "Employment" means personal service, of whatever nature, as known to the common law or any other legal relationship performed for an employer by an individual for compensation or under any contract calling for the performance of personal services, written or oral, express or implied, where the employer is subject to tax under RCW 50.24.010 on any portion of compensation paid by the employer to the individual for the performance of the personal services.
[ 2026 c 238 s 403.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Allocation and apportionment—Nonresident compensation.


title: RCW 82A.04.435

text:
(1) For nonresident members of a professional athletic team, the portion of compensation attributable to athletic performances in the state must be apportioned to Washington as provided under this section.
(2)(a) The portion of the compensation of a member of a professional athletic team apportioned to Washington is that portion of compensation received for the tax year that bears the same ratio to total compensation received for the tax year as the number of duty days within this state bears to the total number of duty days spent both within and outside this state during the tax year.
(b) Notwithstanding the description of the portion of compensation subject to apportionment to the state of Washington under this subsection, the department may provide by rule alternative methodologies for determining the portion of compensation subject to apportionment to the state of Washington that the department determines to be fair and equitable.
(3)(a) A person who transacts business in the state of Washington and who pays wages, salary, bonuses, or other taxable income to a member of a professional athletic team, must submit a report to the department each year indicating any member of a professional athletic team who may be reasonably assumed to owe tax under this chapter for the calendar year.
(b) The report required under (a) of this subsection (3) must include:
(i) The total amount of compensation paid during the year to the members of the professional athletic team for which the report is being made;
(ii) A roster of the members of the professional athletic team for which the report is being made who were members at any time during the year, that lists for each member:
(A) A taxpayer identification number;
(B) Compensation paid to the member; and
(C) The number of duty days in this state and the total number of duty days for the year; and
(iii) Any other information the department may require by rule.
(c) The report must be filed with the department on or before April 15th following the year for which the report is being made or at another time as the department may require by rule.
(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Compensation" means wages, salaries, bonuses, and any other income included with federal adjusted gross income and paid to a member of a professional athletic team.
(b) "Duty days" means the days during the tax year from the beginning of the official preseason training period of a professional athletic team through the last game in which the professional athletic team competes or is scheduled to compete during the tax year.
(c) "Member of a professional athletic team" means a nonresident athlete or other individual rendering service to a professional athletic team if the total compensation of the athlete or other individual exceeds $1,000,000 in a tax year.
[ 2026 c 238 s 404.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Allocation and apportionment—Nonresident compensation—Members of professional athletic team.


title: RCW 82A.04.440

text:
(1) The portion of federal adjusted gross income of a nonresident derived from or connected with a business, trade, or profession carried on in this state, including a sole proprietorship and any distributive share of a pass-through entity of a business, trade, or profession carried on in this state, must be apportioned and allocated as provided in this section. This section does not apply to compensation received as an employee allocated under RCW 82A.04.430.
(2) Income from a business, trade, or profession carried on in this state, including any distributive share of a pass-through entity of a business, trade, or profession carried on in this state, must be classified as either apportionable income or nonapportionable income.
(3) All apportionable income must be apportioned to this state by multiplying the income by the receipts factor. The receipts factor is a fraction the numerator of which is the total receipts of the taxpayer in this state during the tax period and the denominator of which is the total receipts of the taxpayer everywhere during the tax period.
(a) Receipts from the sale of tangible personal property are in this state if:
(i) The property is delivered or shipped to a purchaser, other than the United States government, within this state regardless of the free on board point or other conditions of the sale; or
(ii) The property is shipped from an office, store, warehouse, factory, or other place of storage in this state and (A) the purchaser is the United States government or (B) the taxpayer is not taxable in the state of the purchaser.
(b)(i) Receipts, other than receipts described in (a) of this subsection (3), are in this state if the taxpayer's market for the sales is in this state. The taxpayer's market for sales is in this state:
(A) In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state;
(B) In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state;
(C) In the case of sale of a service, if and to the extent the service is delivered to a location in this state; and
(D) In the case of intangible property:
(I) That is rented, leased, or licensed, if and to the extent the property is used in this state, provided that intangible property used in marketing a good or service to a consumer is "used in this state" if that good or service is purchased by a consumer who is in this state; and
(II) That is sold, if and to the extent the property is used in this state, if:
(1) A contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is "used in this state" if the geographic area includes all or part of this state;
(2) Receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property must be treated as receipts from the rental, lease, or licensing of such intangible property under subsection (4)(a)(i) of this section; and
(3) All other receipts from a sale of intangible property must be excluded from the numerator and denominator of the receipts factor.
(c) If the state or states of assignment under (b) of this subsection (3) cannot be determined, the state or states of assignment must be reasonably approximated.
(d) If the taxpayer is not taxable in a state to which a receipt is assigned under this subsection (3), or if the state of assignment cannot be determined under (b) of this subsection (3) or reasonably approximated under (c) of this subsection (3), the receipt must be excluded from the denominator of the receipts factor.
(4)(a) If the allocation and apportionment provisions in subsection (3) of this section do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the department may require, in respect to all or any part of the taxpayer's business activity, if reasonable:
(i) Separate accounting;
(ii) The exclusion of any one or more of the factors;
(iii) The inclusion of one or more additional factors that will fairly represent the taxpayer's business activity in this state; or
(iv) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income.
(b) If the allocation and apportionment provisions of this section do not fairly represent the extent of business activity in this state for taxpayers engaged in a particular industry or in a particular transaction or activity, the department may, in addition to the authority provided in (a) of this subsection (4), adopt rules for determining alternative allocation and apportionment methods for such taxpayers. Rules adopted pursuant to this subsection (4)(b) must be applied uniformly, except that with respect to any taxpayer to whom such rule applies, the taxpayer may petition for, or the department may require, adjustment under (a) of this subsection (4).
(c)(i) The party petitioning for, or the department requiring, the use of any method to effectuate an equitable allocation and apportionment of the taxpayer's income pursuant to (a) of this subsection (4) must prove by clear and convincing evidence:
(A) That the allocation and apportionment provisions of this section do not fairly represent the extent of the taxpayer's business activity in this state; and
(B) That the alternative to such provisions is reasonable.
(ii) The same burden of proof applies whether the taxpayer is petitioning for, or the department is requiring, the use of any reasonable method to effectuate an equitable allocation and apportionment of the taxpayer's income. However, if the department can show that in any two of the prior five tax years, the taxpayer had used an allocation or apportionment method at variance with its allocation or apportionment method or methods used for such other tax years, then the department does not bear the burden of proof in imposing a different method pursuant to (a) of this subsection (4).
(iii) If the department requires any method to effectuate an equitable allocation and apportionment of the taxpayer's income, the department may not impose any civil or criminal penalty with reference to the tax due that is attributable to the taxpayer's reasonable reliance solely on the allocation and apportionment provisions of this section.
(iv) A taxpayer that has received written permission from the department to use a reasonable method to effectuate an equitable allocation and apportionment of the taxpayer's income may not have that permission revoked with respect to transactions and activities that have already occurred unless there has been a material change in, or a material misrepresentation of, the facts provided by the taxpayer upon which the department reasonably relied.
(5) Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonapportionable income, must be allocated as provided in subsections (6) through (9) of this section.
(6)(a) Net rents and royalties from real property located in this state are allocable to this state.
(b) Net rents and royalties from tangible personal property are allocable to this state: (i) If and to the extent that the property is utilized in this state; or (ii) in their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
(c) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
(7)(a) Short-term capital gains and losses from sales of real property located in this state are allocable to this state.
(b) Short-term capital gains and losses from sales of tangible personal property are allocable to this state if: (i) The property had a situs in this state at the time of the sale; or (ii) the taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.
(c) Short-term capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.
(8) Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.
(9)(a) Patent and copyright royalties are allocable to this state: (i) If and to the extent that the patent or copyright is utilized by the payer in this state; or (ii) if and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.
(b) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.
(c) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located.
(10) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Apportionable income" means:
(i) All income that is apportionable under the Constitution of the United States and is not allocated under the laws of this state, including:
(A) Income arising from transactions and activity in the regular course of the taxpayer's trade or business; and
(B) Income arising from tangible and intangible property if the acquisition, management, employment, development, or disposition of the property is or was related to the operation of the taxpayer's trade or business; and
(ii) Any income that would be allocable to this state under the Constitution of the United States, but that is apportioned rather than allocated pursuant to the laws of this state.
(b) "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed.
(c) "Nonapportionable income" means all income other than apportionable income.
(d) "Receipts" means all gross receipts of the taxpayer that are not allocated under this section, and that are received from transactions and activity in the regular course of the taxpayer's trade or business, except that receipts of a taxpayer from hedging transactions and from the maturity, redemption, sale, exchange, loan, or other disposition of cash or securities, shall be excluded.
(e) "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof.
(f) "Taxpayer" means a pass-through entity or individual conducting business activity in the state of Washington.
[ 2026 c 238 s 405.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Allocation and apportionment—Nonresident business activity.


title: RCW 82A.04.450

text:
(1) Except as provided in subsection (2) of this section, the adjusted gross income of a part-year resident is the sum of the following:
(a) For the portion of the year in which the taxpayer was a resident of Washington, the taxpayer's entire adjusted gross income; and
(b) For the portion of the year in which the taxpayer was a nonresident, the taxpayer's adjusted gross income derived from sources within this state, as provided in RCW 82A.04.430 through 82A.04.440 and 82A.04.460.
(2) The adjusted gross income of a part-year resident with federal adjusted gross income that includes an item of income, gain, loss, deduction, or credit from a pass-through entity must include the sum of the following:
(a) The total amount of the item that is taken into account in federal adjusted gross income, multiplied by the ratio of the number of days the taxpayer was a resident of Washington during the tax year of the entity over the total number of days in the tax year of the entity; and
(b) The total amount of the item that is taken into account in federal adjusted gross income and that is derived from or connected with sources within this state, as determined under RCW 82A.04.430 through 82A.04.440 and 82A.04.460, multiplied by the ratio of the number of days the taxpayer was a nonresident of Washington during the tax year of the entity over the total number of days in the tax year of the entity.
[ 2026 c 238 s 406.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Allocation and apportionment—Part-year income.


title: RCW 82A.04.460

text:
(1) The portion of adjusted gross income of a nonresident student athlete derived from the commercial use of the student athlete's name, image, or likeness is allocated to this state if the publicity services provided by the student athlete related to such commercial use of the student athlete's name, image, or likeness primarily occur in Washington.
(2) The portion of adjusted gross income of a nonresident student athlete derived from payments by an institution of higher education representing a percentage of institutional athletic revenues shall be apportioned to Washington in a form and manner consistent with a duty-day methodology. By January 1, 2028, the department shall submit proposed legislation to the legislature that would implement an apportionment methodology as specified under this subsection (2).
(3) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Commercial use" means the use of an individual's name, image, or likeness for advertising, selling, or soliciting purchases of products, goods, or services.
(b) "Name, image, or likeness" means an individual's readily identifiable name, voice, signature, photograph, or likeness.
(c) "Publicity services" includes, but is not limited to, the following activities: Appearing in photoshoots; filming commercials; recording audio endorsements; posting sponsored content on social media platforms; attending promotional events; either wearing or using, or both, branded products; and granting rights by the student athlete to use the student athlete's name, image, or likeness in either advertisements or online campaigns, or both.
(d) "Student athlete" means an individual who is enrolled at an institution of higher education and eligible to engage in any varsity intercollegiate athletics program at the institution.
[ 2026 c 238 s 407.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Allocation and apportionment—Nonresident student athlete income.


title: RCW 82A.04.510

text:
(1) Each individual with an estimated tax under this chapter in excess of $5,000 that is required by the internal revenue code to make payment of estimated taxes must pay to the department on forms prescribed by the department the estimated taxes due under this chapter.
(2) The provisions of the internal revenue code relating to the determination of reporting periods and due dates of payments of estimated tax applies to the estimated tax payments due under this section.
(3) Estimated tax payments are not required under this section if the annualized estimated tax is less than $5,000. RCW 82.32.090 applies to underpayments of estimated tax.
(4) For purposes of this section, the annualized estimated tax is the taxpayer's projected tax liability for the tax year as computed pursuant to section 6654 of the internal revenue code and the regulations thereunder.
(5) The department shall adopt rules for making estimated tax payments under this section on wages, salaries, and other compensation subject to federal income tax withholding.
(6) Estimated payments are not required under this section before July 1, 2029.
[ 2026 c 238 s 501.]
Notes:
Findings—Intent—Effect of invalidation of 2026 c 238 s 201—Automatic expiration date and tax preference performance statement exemption—Necessity of act—Intent—Implementation by department of revenue—2026 c 238: See notes following RCW 82A.04.030.

catchline: Estimated tax payments.