doc_type: statute

jurisdiction: wa

title: RCW 82.04.2602

text:
The rate of 0.357 percent authorized pursuant to RCW 82.04.260(11)(e) may be imposed only if the following conditions are met:
(1) The department of commerce verifies with the United States trade representative that the United States and the European Union have entered into a written agreement that resolves any world trade organization disputes involving large civil aircraft.
(2) Such agreement expressly allows a business and occupation tax rate reduction for commercial airplane manufacturers to 0.357 percent or less.
(3) The department of commerce notifies the department in writing that the conditions of subsections (1) and (2) of this section are met and provides a copy of the agreement between the United States and the European Union or other document providing for the business and occupation tax rate reduction to the department.
(4) The department of labor and industries notifies the department in writing that a significant commercial airplane manufacturer has at least a three-tenths of one percent aerospace apprenticeship utilization rate of its qualified apprenticeable workforce in Washington, as defined in RCW 49.04.220.
(5) Within thirty days of receiving the last of the written notices described in subsections (3) and (4) of this section, the department must provide written notice to the chief clerk of the house of representatives, the secretary of the senate, the office of the code reviser, and others as deemed appropriate by the department, that the tax rates in RCW 82.04.260(11)(e) are reduced to 0.357 percent and the effective date of the rate reduction.
(6) Any rate reduction to 0.357 percent pursuant to this section and RCW 82.04.260(11)(e) must occur on the first day of the next calendar quarter that is at least sixty days after the department receives the last of the written notices described in subsections (3) and (4) of this section.
(7) For the purpose of this section, "world trade organization disputes involving large civil airplanes" means any disputes filed by the United States or the European Union prior to March 25, 2020, that involve either allegations of subsidies to large civil airplanes, or allegations of taxes imposed by Washington on commercial airplanes, or both.
[ 2020 c 165 s 2.]
Notes:
Findings—Intent—2020 c 165: "(1) Over the past two decades, the legislature has taken significant action to promote a positive business environment for Washington's aerospace industry. The legislature finds that the industry plays a significant role not only in the health of Washington's economy, but also in the health of the United States economy. Moreover, the domestic aerospace industry has faced significant challenges with the large subsidies provided to international competitors.
(2) The legislature finds that a commitment to the elimination of trade barriers for aerospace as well as several other vital Washington exports is important. The legislature also wishes to help bring the United States into full compliance with a recent world trade organization ruling asserting Washington's business and occupation tax rate of 0.2904 percent violates world trade organization rules. The legislature hopes this action to help bring the United States into compliance will end the threat of retaliatory tariffs against many of Washington's industries, including agricultural products, fish, wine, and intellectual property.
(3) The legislature appreciates the state aerospace industry's commitment to complying with the world trade organization ruling by advocating for the repeal of the preferential business and occupation tax. The legislature hopes that the repeal of this Washington aerospace preference will ensure continued economic success and competitiveness for the industry as well as many other industries. The legislature further hopes that the repeal of the 0.2904 business and occupation tax will allow for the complete resolution of all trade disputes surrounding large civil aircraft.
(4) The legislature further finds that the people of Washington benefit from the presence of the aerospace industry in Washington state. The industry provides good wages and benefits for thousands of engineers, technicians, mechanics, and support staff working across the state. Furthermore, the legislature has a goal of preserving and growing employment in Washington state. The legislature intends that the future consideration of all tax measures will work to achieve this goal in a manner compliant with the world trade organization." [ 2020 c 165 s 1.]
Effective date—2020 c 165: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 25, 2020]." [ 2020 c 165 s 6.]

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Tax on commercial airplane activities—Conditions for rate reduction.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 82.04.261

text:
(1) In addition to the taxes imposed under RCW 82.04.260(12), a surcharge is imposed on those persons who are subject to any of the taxes imposed under RCW 82.04.260(12). Except as otherwise provided in this section, the surcharge is equal to 0.052 percent. The surcharge is added to the rates provided in RCW 82.04.260(12) (a), (b), (c), and (d).
(2) All receipts from the surcharge imposed under this section must be deposited into the forest and fish support account created in RCW 76.09.405, with any receipts above eight million dollars per biennium specifically used as additional funding for tribal participation grants.
(3)(a) The surcharge imposed under this section is suspended if:
(i) Before July 1, 2024, receipts from the surcharge total at least eight million five hundred thousand dollars during any fiscal biennium;
(ii) Between July 1, 2024, through June 30, 2029, receipts from the surcharge total at least nine million dollars during any fiscal biennium; and
(iii) After June 30, 2029, the receipts from the surcharge total at least nine million five hundred thousand dollars during any fiscal biennium.
(b) The suspension of the surcharge under this subsection (3) takes effect on the first day of the calendar month that is at least thirty days after the end of the month during which the department determines that receipts from the surcharge total the values specified in this subsection (3) during the fiscal biennium. The surcharge is imposed again at the beginning of the following fiscal biennium.
(4) This section expires July 1, 2045.
[ 2021 c 145 s 8; 2019 c 336 s 5; 2017 c 323 s 501; 2010 1st sp.s. c 23 s 510. Prior: 2007 c 54 s 7; 2007 c 48 s 4; 2006 c 300 s 2.]
Notes:
Finding—Intent—2019 c 336: "The legislature finds that while many parts of the state are thriving economically, some rural and distressed communities have struggled to keep pace. These communities represent significant opportunity for economic growth and innovation. However, businesses and entrepreneurs often find it difficult to obtain the capital they need to expand and grow in these areas. Therefore, it is the intent of the legislature to study the creation of a program to incentivize private investments and job creation in rural and distressed communities while ensuring no loss of revenue to the state." [ 2019 c 336 s 1.]
Findings—2019 c 336: "(1) The legislature finds that the Washington state forest practices habitat conservation plan was approved in 2006 by the United States fish and wildlife service and the national oceanic and atmospheric administration's marine fisheries service. The legislature further finds that the conservation plan protects habitat of aquatic species, supports economically viable and healthy forests, and creates regulatory stability for landowners. The legislature further finds that funding for the adaptive management program and participation grants are required to implement the forest and fish agreement and meet the goals of the conservation plan. The legislature further finds that the surcharge on the timber products business and occupation tax rate was agreed to by the forest products industry, tribal leaders, and stakeholders as a way to provide funding and safeguard the future of the conservation plan. The legislature further finds that the forestry industry assumed significant financial obligation with the enactment of this conservation plan, in exchange for operational certainty under the endangered species act. Therefore, the legislature concludes that the timber products business and occupation tax rate and the surcharge should continue until the expiration date of the forest and fish agreement, in 2056.
(2) The legislature finds that Washington has one of the strongest economies in the country. However, the local economies in some rural counties continue to struggle. The legislature further finds that the economic prosperity of our state must be shared by all of our communities. The legislature further finds that forest product sectors provide family-wage jobs in economically struggling areas of the state. The legislature further finds that in 2017 the Washington forest products industry, directly and indirectly, employed one hundred one thousand workers, earning 5.5 billion dollars in wages. Therefore, the legislature concludes that the forest products industries support our local rural economies and contribute towards the effort to lower unemployment rates across the state, especially in rural areas." [ 2019 c 336 s 3.]
Tax preference performance statement exemption—Automatic expiration date exemption—2017 c 323: See note following RCW 82.04.040.
Effective date—2010 1st sp.s. c 23: See note following RCW 82.04.4292.
Findings—Intent—2010 1st sp.s. c 23: See notes following RCW 82.04.220.
Severability—2007 c 54: See note following RCW 82.04.050.
Savings—2007 c 48: "The expiration of RCW 82.04.261 does not affect any existing right acquired or liability or obligation incurred under that section or under any rule or order adopted under that section, nor does it affect any proceeding instituted under that section." [ 2007 c 48 s 8.]
Effective date—2007 c 48: See note following RCW 82.04.260.
Effective dates—Contingent effective date—2006 c 300: "(1) Sections 1, 3, 4 through 6, and 8 through 12 of this act take effect July 1, 2006.
(2) Section 2 of this act takes effect July 1, 2007.
(3) Section 7 of this act takes effect if the contingency in *section 12 of this act occurs." [ 2006 c 300 s 13.]
*Reviser's note: See RCW 82.32.790.

catchline: Surcharge on timber and wood product manufacturers, extractors, and wholesalers. (Expires July 1, 2045.)


title: RCW 82.04.263

text:
(1) Upon every person engaging within this state in the business of cleaning up for the United States, or its instrumentalities, radioactive waste and other by-products of weapons production and nuclear research and development; as to such persons the amount of the tax with respect to such business shall be equal to the gross income of the business multiplied by the rate of 0.471 percent.
(2) For the purposes of this chapter, "cleaning up radioactive waste and other by-products of weapons production and nuclear research and development" means:
(a) The activities of handling, storing, treating, immobilizing, stabilizing, or disposing of radioactive waste, radioactive tank waste and capsules, nonradioactive hazardous solid and liquid wastes, or spent nuclear fuel;
(b) Spent nuclear fuel conditioning;
(c) Removal of contamination in soils and groundwater;
(d) Decontamination and decommissioning of facilities; and
(e) Services supporting the performance of cleanup. For the purposes of this subsection (2)(e), a service supports the performance of cleanup if it:
(i) Is within the scope of work under a clean-up contract with the United States department of energy; or
(ii) Assists in the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy under a subcontract entered into with the prime contractor or another subcontractor in furtherance of a clean-up contract between the United States department of energy and a prime contractor.
(3) A service does not assist in the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy if the same services are routinely provided to businesses not engaged in clean-up activities, except that the following services are always deemed to contribute to the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy:
(a) Information technology and computer support services;
(b) Services rendered in respect to infrastructure; and
(c) Security, safety, and health services.
(4) The legislature intends that the examples provided in this subsection be used as a guideline when determining whether a service is "routinely provided to businesses not engaged in clean-up activities" as that phrase is used in subsection (3) of this section.
(a) The radioactive waste clean-up classification does not apply to general accounting services but does apply to performance audits performed for persons cleaning up radioactive waste.
(b) The radioactive waste clean-up classification does not apply to general legal services but does apply to those legal services that assist in the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy. Thus, legal services provided to contest any local, state, or federal tax liability or to defend a company against a workers' compensation claim arising from a worksite injury do not qualify for the radioactive waste clean-up classification. But, legal services related to the resolution of a contractual dispute between the parties to a clean-up contract between the United States department of energy and a prime contractor do qualify.
(c) General office janitorial services do not qualify for the radioactive waste clean-up classification, but the specialized cleaning of equipment exposed to radioactive waste does qualify.
[ 2009 c 469 s 202; 1996 c 112 s 3.]
Notes:
Finding—Intent—2009 c 469: "(1) The legislature finds that the cleaning up of radioactive waste at the Hanford site is crucial to the environment in this state. The legislature intends to include services supporting the cleanup within the radioactive waste clean-up business and occupation tax classification, but it is not the legislature's intent to extend the radioactive waste clean-up classification to all business activities conducted at the Hanford site or performed for persons engaged in the performance of cleanup.
(2) It is the legislature's intent in enacting this legislation to ensure that the radioactive waste clean-up business and occupation tax classification applies to all services contributing to the performance of a clean-up project at the Hanford site other than services that are routinely provided to any business, including businesses that are not engaged in clean-up activities." [ 2009 c 469 s 201.]
Effective date—1996 c 112: See note following RCW 82.04.050.
PDF
RCW 82.04.263
Tax on cleaning up radioactive waste and other by-products of weapons production and nuclear research and development. (Effective January 1, 2027.)
(1) Upon every person engaging within this state in the business of cleaning up for the United States, or its instrumentalities, radioactive waste and other by-products of weapons production and nuclear research and development; as to such persons the amount of the tax with respect to such business shall be equal to the gross income of the business multiplied by the rate of 0.5 percent.
(2) For the purposes of this chapter, "cleaning up radioactive waste and other by-products of weapons production and nuclear research and development" means:
(a) The activities of handling, storing, treating, immobilizing, stabilizing, or disposing of radioactive waste, radioactive tank waste and capsules, nonradioactive hazardous solid and liquid wastes, or spent nuclear fuel;
(b) Spent nuclear fuel conditioning;
(c) Removal of contamination in soils and groundwater;
(d) Decontamination and decommissioning of facilities; and
(e) Services supporting the performance of cleanup. For the purposes of this subsection (2)(e), a service supports the performance of cleanup if it:
(i) Is within the scope of work under a clean-up contract with the United States department of energy; or
(ii) Assists in the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy under a subcontract entered into with the prime contractor or another subcontractor in furtherance of a clean-up contract between the United States department of energy and a prime contractor.
(3) A service does not assist in the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy if the same services are routinely provided to businesses not engaged in clean-up activities, except that the following services are always deemed to contribute to the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy:
(a) Information technology and computer support services;
(b) Services rendered in respect to infrastructure; and
(c) Security, safety, and health services.
(4) The legislature intends that the examples provided in this subsection be used as a guideline when determining whether a service is "routinely provided to businesses not engaged in clean-up activities" as that phrase is used in subsection (3) of this section.
(a) The radioactive waste clean-up classification does not apply to general accounting services but does apply to performance audits performed for persons cleaning up radioactive waste.
(b) The radioactive waste clean-up classification does not apply to general legal services but does apply to those legal services that assist in the accomplishment of a requirement of a clean-up project undertaken by the United States department of energy. Thus, legal services provided to contest any local, state, or federal tax liability or to defend a company against a workers' compensation claim arising from a worksite injury do not qualify for the radioactive waste clean-up classification. But, legal services related to the resolution of a contractual dispute between the parties to a clean-up contract between the United States department of energy and a prime contractor do qualify.
(c) General office janitorial services do not qualify for the radioactive waste clean-up classification, but the specialized cleaning of equipment exposed to radioactive waste does qualify.
[ 2025 c 420 s 105; 2009 c 469 s 202; 1996 c 112 s 3.]
Notes:
Effective date—2025 c 420 ss 101-108 and 110-112: See note following RCW 82.04.230.
Tax preference performance statement exemption—Automatic expiration date exemption—Necessity of act—2025 c 420: See notes following RCW 82.04.230.
Finding—Intent—2009 c 469: "(1) The legislature finds that the cleaning up of radioactive waste at the Hanford site is crucial to the environment in this state. The legislature intends to include services supporting the cleanup within the radioactive waste clean-up business and occupation tax classification, but it is not the legislature's intent to extend the radioactive waste clean-up classification to all business activities conducted at the Hanford site or performed for persons engaged in the performance of cleanup.
(2) It is the legislature's intent in enacting this legislation to ensure that the radioactive waste clean-up business and occupation tax classification applies to all services contributing to the performance of a clean-up project at the Hanford site other than services that are routinely provided to any business, including businesses that are not engaged in clean-up activities." [ 2009 c 469 s 201.]
Effective date—1996 c 112: See note following RCW 82.04.050.

catchline: Tax on cleaning up radioactive waste and other by-products of weapons production and nuclear research and development. (Effective until January 1, 2027.)


title: RCW 82.04.270

text:
Upon every person engaging within this state in the business of making sales at wholesale, except persons taxable as wholesalers under other provisions of this chapter; as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds of sales of such business multiplied by the rate of 0.484 percent.
[ 2004 c 24 s 5; 2003 2nd sp.s. c 1 s 5; 2001 1st sp.s. c 9 s 3; (2001 1st sp.s. c 9 s 2 expired July 1, 2001); 1999 c 358 s 2. Prior: 1999 c 358 s 1; 1998 c 343 s 2; 1998 c 329 s 1; 1998 c 312 s 6; 1994 c 124 s 2; 1993 sp.s. c 25 s 105; 1981 c 172 s 4; 1971 ex.s. c 281 s 6; 1971 ex.s. c 186 s 4; 1969 ex.s. c 262 s 37; 1967 ex.s. c 149 s 11; 1961 c 15 s 82.04.270; prior: 1959 ex.s. c 5 s 3; 1955 c 389 s 47; prior: 1950 ex.s. c 5 s 1, part; 1949 c 228 s 1, part; 1943 c 156 s 1, part; 1941 c 178 s 1, part; 1939 c 225 s 1, part; 1937 c 227 s 1, part; 1935 c 180 s 4, part; Rem. Supp. 1949 s 8370-4, part.]
Notes:
Intent—Effective date—2004 c 24: See notes following RCW 82.04.2909.
Finding—2003 2nd sp.s. c 1: See note following RCW 82.04.4461.
Effective dates—2001 1st sp.s. c 9: See note following RCW 82.04.298.
Expiration dates—2001 1st sp.s. c 9: See note following RCW 82.04.290.
Effective date—1999 c 358 s 2: "Section 2 of this act takes effect July 1, 2001." [ 1999 c 358 s 23.]
Effective date—1999 c 358 ss 1 and 3-21: See note following RCW 82.04.3651.
Effective date—1998 c 343: See note following RCW 82.04.272.
Effective date—1998 c 329: "This act takes effect July 1, 1998." [ 1998 c 329 s 2.]
Effective date—Savings—1998 c 312: See notes following RCW 82.04.332.
Severability—Effective dates—Part headings, captions not law—1993 sp.s. c 25: See notes following RCW 82.04.230.
Effective dates—1981 c 172: See note following RCW 82.04.240.
Effective date—1971 ex.s. c 186: See note following RCW 82.04.110.
PDF
RCW 82.04.270
Tax on wholesalers. (Effective January 1, 2027.)
Upon every person engaging within this state in the business of making sales at wholesale, except persons taxable as wholesalers under other provisions of this chapter; as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds of sales of such business multiplied by the rate of 0.5 percent.
[ 2025 c 420 s 106; 2004 c 24 s 5; 2003 2nd sp.s. c 1 s 5; 2001 1st sp.s. c 9 s 3; (2001 1st sp.s. c 9 s 2 expired July 1, 2001); 1999 c 358 s 2. Prior: 1999 c 358 s 1; 1998 c 343 s 2; 1998 c 329 s 1; 1998 c 312 s 6; 1994 c 124 s 2; 1993 sp.s. c 25 s 105; 1981 c 172 s 4; 1971 ex.s. c 281 s 6; 1971 ex.s. c 186 s 4; 1969 ex.s. c 262 s 37; 1967 ex.s. c 149 s 11; 1961 c 15 s 82.04.270; prior: 1959 ex.s. c 5 s 3; 1955 c 389 s 47; prior: 1950 ex.s. c 5 s 1, part; 1949 c 228 s 1, part; 1943 c 156 s 1, part; 1941 c 178 s 1, part; 1939 c 225 s 1, part; 1937 c 227 s 1, part; 1935 c 180 s 4, part; Rem. Supp. 1949 s 8370-4, part.]
Notes:
Effective date—2025 c 420 ss 101-108 and 110-112: See note following RCW 82.04.230.
Tax preference performance statement exemption—Automatic expiration date exemption—Necessity of act—2025 c 420: See notes following RCW 82.04.230.
Intent—Effective date—2004 c 24: See notes following RCW 82.04.2909.
Finding—2003 2nd sp.s. c 1: See note following RCW 82.04.4461.
Effective dates—2001 1st sp.s. c 9: See note following RCW 82.04.298.
Expiration dates—2001 1st sp.s. c 9: See note following RCW 82.04.290.
Effective date—1999 c 358 s 2: "Section 2 of this act takes effect July 1, 2001." [ 1999 c 358 s 23.]
Effective date—1999 c 358 ss 1 and 3-21: See note following RCW 82.04.3651.
Effective date—1998 c 343: See note following RCW 82.04.272.
Effective date—1998 c 329: "This act takes effect July 1, 1998." [ 1998 c 329 s 2.]
Effective date—Savings—1998 c 312: See notes following RCW 82.04.332.
Severability—Effective dates—Part headings, captions not law—1993 sp.s. c 25: See notes following RCW 82.04.230.
Effective dates—1981 c 172: See note following RCW 82.04.240.
Effective date—1971 ex.s. c 186: See note following RCW 82.04.110.

catchline: Tax on wholesalers. (Effective until January 1, 2027.)


title: RCW 82.04.272

text:
(1) Upon every person engaging within this state in the business of warehousing and reselling drugs for human use pursuant to a prescription; as to such persons, the amount of the tax shall be equal to the gross income of the business multiplied by the rate of 0.138 percent.
(2) For the purposes of this section:
(a) "Prescription" and "drug" have the same meaning as in RCW 82.08.0281; and
(b) "Warehousing and reselling drugs for human use pursuant to a prescription" means the buying of drugs for human use pursuant to a prescription from a manufacturer or another wholesaler, and reselling of the drugs to persons selling at retail or to hospitals, clinics, health care providers, or other providers of health care services, by a wholesaler or retailer who is registered with the federal drug enforcement administration and licensed by the pharmacy quality assurance commission.
[ 2013 c 19 s 127; 2003 c 168 s 401; 1998 c 343 s 1.]
Notes:
Effective dates—Part headings not law—2003 c 168: See notes following RCW 82.08.010.
Effective date—1998 c 343: "This act takes effect July 1, 2001." [ 1998 c 343 s 6.]

catchline: Tax on warehousing and reselling prescription drugs. (Effective until January 1, 2027.)


title: RCW 82.04.280

text:
(1) Upon every person engaging within this state in the business of: (a) Printing materials other than newspapers, and of publishing periodicals or magazines; (b) building, repairing or improving any street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used, primarily for foot or vehicular traffic including mass transportation vehicles of any kind and including any readjustment, reconstruction or relocation of the facilities of any public, private or cooperatively owned utility or railroad in the course of such building, repairing or improving, the cost of which readjustment, reconstruction, or relocation, is the responsibility of the public authority whose street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle is being built, repaired or improved; (c) extracting for hire or processing for hire, except persons taxable as extractors for hire or processors for hire under another section of this chapter; (d) operating a cold storage warehouse or storage warehouse, but not including the rental of cold storage lockers; (e) representing and performing services for fire or casualty insurance companies as an independent resident managing general agent licensed under the provisions of chapter 48.17 RCW; (f) engaging in activities which bring a person within the definition of consumer contained in RCW 82.04.190(6); as to such persons, the amount of tax on such business is equal to the gross income of the business multiplied by the rate of 0.484 percent.
(2) For the purposes of this section, the following definitions apply unless the context clearly requires otherwise.
(a) "Cold storage warehouse" means a storage warehouse used to store fresh and/or frozen perishable fruits or vegetables, meat, seafood, dairy products, or fowl, or any combination thereof, at a desired temperature to maintain the quality of the product for orderly marketing.
(b) "Storage warehouse" means a building or structure, or any part thereof, in which goods, wares, or merchandise are received for storage for compensation, except field warehouses, fruit warehouses, fruit packing plants, warehouses licensed under chapter 22.09 RCW, public garages storing automobiles, railroad freight sheds, docks and wharves, and "self-storage" or "mini storage" facilities whereby customers have direct access to individual storage areas by separate entrance. "Storage warehouse" does not include a building or structure, or that part of such building or structure, in which an activity taxable under RCW 82.04.272 is conducted.
(c) "Periodical or magazine" means a printed publication, other than a newspaper, issued regularly at stated intervals at least once every three months, including any supplement or special edition of the publication.
[ 2025 c 423 s 202; 2025 c 9 s 2; 2019 c 449 s 1; 2017 c 323 s 508. Prior: (2010 c 106 s 206 repealed by 2017 c 323 s 510); 2010 c 106 s 205; (2009 c 461 s 3 repealed by 2017 c 323 s 510); 2009 c 461 s 2; (2006 c 300 s 7 repealed by 2017 c 323 s 510); 2006 c 300 s 6; 2004 c 24 s 6; (2003 c 149 s 4 repealed by 2017 c 323 s 510); 1998 c 343 s 3; 1994 c 112 s 1; 1993 sp.s. c 25 s 303; 1993 sp.s. c 25 s 106; 1986 c 226 s 2; 1983 c 132 s 1; 1975 1st ex.s. c 90 s 3; 1971 ex.s. c 299 s 5; 1971 ex.s. c 281 s 7; 1970 ex.s. c 8 s 2; prior: 1969 ex.s. c 262 s 38; 1969 ex.s. c 255 s 5; 1967 ex.s. c 149 s 13; 1963 c 168 s 1; 1961 c 15 s 82.04.280; prior: 1959 ex.s. c 5 s 4; 1959 ex.s. c 3 s 4; 1955 c 389 s 48; prior: 1950 ex.s. c 5 s 1, part; 1949 c 228 s 1, part; 1943 c 156 s 1, part; 1941 c 178 s 1, part; 1939 c 228 s 1, part; 1937 c 227 s 1, part; 1935 c 180 s 4, part; Rem. Supp. 1949 s 8370-4, part.]
Notes:
Reviser's note: This section was amended by 2025 c 9 s 2 and by 2025 c 423 s 202, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Effective date—2025 c 423 ss 101, 103, 104, 105, 201, and 202: See note following RCW 82.04.260.
Finding—Intent—Necessity of act—2025 c 423: See notes following RCW 82.04.260.
Tax preference performance statement exemption—Automatic expiration date exemption—2025 c 9: See note following RCW 82.04.281.
Tax preference performance statement exemption—Automatic expiration date exemption—2017 c 323: See note following RCW 82.04.040.
Contingent effective date—2010 c 106 ss 205 and 206: "If section 206 of this act takes effect, section 205 of this act expires on the date section 206 of this act takes effect." [ 2010 c 106 s 413.]
Effective date—2010 c 106: See note following RCW 35.102.145.
Effective date—Contingent effective date—2009 c 461: "(1) Except as provided in subsection (2) of this section, this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2009.
(2) Section 3 of this act takes effect if the contingency in *section 9 of this act occurs." [ 2009 c 461 s 10.]
*Reviser's note: See RCW 82.32.790.
Contingent expiration date—2009 c 461: "Section 2 of this act expires on the date that section 3 of this act takes effect." [ 2009 c 461 s 11.]
Contingent expiration date—2006 c 300 s 6: "Section 6 of this act expires on the date that section 7 of this act takes effect." [ 2006 c 300 s 14.]
Effective dates—Contingent effective date—2006 c 300: See note following RCW 82.04.261.
Intent—Effective date—2004 c 24: See notes following RCW 82.04.2909.
Findings—Intent—2003 c 149: See note following RCW 82.04.426.
Effective date—1998 c 343: See note following RCW 82.04.272.
Retroactive application—1994 c 112 s 1: "Section 1 of this act shall apply retroactively to July 1, 1993." [ 1994 c 112 s 5.]
Severability—Effective dates—Part headings, captions not law—1993 sp.s. c 25: See notes following RCW 82.04.230.
Effective date—1986 c 226: See note following RCW 82.16.010.
Application to preexisting contracts—1975 1st ex.s. c 90:See note following RCW 82.12.010.
Effective date—1975 1st ex.s. c 90: See note following RCW 82.04.050.
Effective dates—Severability—1971 ex.s. c 299: See notes following RCW 82.04.050.
PDF
RCW 82.04.280
Tax on printers, publishers, highway contractors, extracting or processing for hire, cold storage warehouse or storage warehouse operation, insurance general agents, government contractors—Tax on warehousing and reselling prescription drugs. (Effective January 1, 2027.)
(1) Upon every person engaging within this state in the business of: (a) Printing materials other than newspapers, and of publishing periodicals or magazines; (b) building, repairing or improving any street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used, primarily for foot or vehicular traffic including mass transportation vehicles of any kind and including any readjustment, reconstruction or relocation of the facilities of any public, private or cooperatively owned utility or railroad in the course of such building, repairing or improving, the cost of which readjustment, reconstruction, or relocation, is the responsibility of the public authority whose street, place, road, highway, easement, right-of-way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle is being built, repaired or improved; (c) extracting for hire or processing for hire, except persons taxable as extractors for hire or processors for hire under another section of this chapter; (d) operating a cold storage warehouse or storage warehouse, but not including the rental of cold storage lockers; (e) representing and performing services for fire or casualty insurance companies as an independent resident managing general agent licensed under the provisions of chapter 48.17 RCW; (f) engaging in activities which bring a person within the definition of consumer contained in RCW 82.04.190(6); and (g) during calendar year 2027, warehousing and reselling drugs for human use pursuant to a prescription; as to such persons, the amount of tax on such business is equal to the gross income of the business multiplied by the rate of 0.5 percent.
(2) Beginning January 1, 2028, upon every person engaging within this state in the business of warehousing and reselling drugs for human use pursuant to a prescription, as to such persons, the amount of tax on such business is equal to the gross income of the business multiplied by the rate of 0.35 percent.
(3) For the purposes of this section, the following definitions apply unless the context clearly requires otherwise.
(a) "Cold storage warehouse" means a storage warehouse used to store fresh and/or frozen perishable fruits or vegetables, meat, seafood, dairy products, or fowl, or any combination thereof, at a desired temperature to maintain the quality of the product for orderly marketing.
(b) "Drug" has the same meaning as in RCW 82.08.0281.
(c) "Storage warehouse" means a building or structure, or any part thereof, in which goods, wares, or merchandise are received for storage for compensation, except field warehouses, fruit warehouses, fruit packing plants, warehouses licensed under chapter 22.09 RCW, public garages storing automobiles, railroad freight sheds, docks and wharves, and "self-storage" or "mini storage" facilities whereby customers have direct access to individual storage areas by separate entrance.
(d) "Periodical or magazine" means a printed publication, other than a newspaper, issued regularly at stated intervals at least once every three months, including any supplement or special edition of the publication.
(e) "Prescription" has the same meaning as in RCW 82.08.0281.
(f) "Warehousing and reselling drugs for human use pursuant to a prescription" means the buying of drugs for human use pursuant to a prescription from a manufacturer or another wholesaler and reselling of the drugs to persons selling at retail or to hospitals, clinics, health care providers, or other providers of health care services by a wholesaler or retailer who is registered with the federal drug enforcement administration and licensed by the pharmacy quality assurance commission.
[ 2026 c 265 s 2. Prior: 2025 c 423 s 202; 2025 c 420 s 107; 2025 c 9 s 2; 2019 c 449 s 1; 2017 c 323 s 508; prior: (2010 c 106 s 206 repealed by 2017 c 323 s 510); 2010 c 106 s 205; (2009 c 461 s 3 repealed by 2017 c 323 s 510); 2009 c 461 s 2; (2006 c 300 s 7 repealed by 2017 c 323 s 510); 2006 c 300 s 6; 2004 c 24 s 6; (2003 c 149 s 4 repealed by 2017 c 323 s 510); 1998 c 343 s 3; 1994 c 112 s 1; 1993 sp.s. c 25 s 303; 1993 sp.s. c 25 s 106; 1986 c 226 s 2; 1983 c 132 s 1; 1975 1st ex.s. c 90 s 3; 1971 ex.s. c 299 s 5; 1971 ex.s. c 281 s 7; 1970 ex.s. c 8 s 2; prior: 1969 ex.s. c 262 s 38; 1969 ex.s. c 255 s 5; 1967 ex.s. c 149 s 13; 1963 c 168 s 1; 1961 c 15 s 82.04.280; prior: 1959 ex.s. c 5 s 4; 1959 ex.s. c 3 s 4; 1955 c 389 s 48; prior: 1950 ex.s. c 5 s 1, part; 1949 c 228 s 1, part; 1943 c 156 s 1, part; 1941 c 178 s 1, part; 1939 c 228 s 1, part; 1937 c 227 s 1, part; 1935 c 180 s 4, part; Rem. Supp. 1949 s 8370-4, part.]
Notes:
Findings—Intent—2026 c 265: "The legislature finds that, according to the most recent tax exemption study published by the department of revenue, there are currently 786 tax exemptions for the major state and local tax sources in Washington. A number of these tax exemptions have been unchanged in law for a long time and exist as the result of private interests securing preferential tax treatment. Furthermore, the legislature finds that the state's tax code must be periodically reviewed and updated to ensure that tax policy reflects our modern economy and provides adequate revenue to fund necessary and essential services to support the well-being of Washingtonians. Thus, it is the intent of the legislature to remove a tax preference in order to increase revenue to the state's general fund to maintain essential state services." [ 2026 c 265 s 1.]
Automatic expiration date and tax preference performance statement exemption—2026 c 265: "RCW 82.32.805 and 82.32.808 do not apply to this act." [ 2026 c 265 s 5.]
Effective date—2026 c 265: "This act takes effect January 1, 2027." [ 2026 c 265 s 6.]
Effective date—2025 c 423 ss 101, 103, 104, 105, 201, and 202: See note following RCW 82.04.260.
Finding—Intent—Necessity of act—2025 c 423: See notes following RCW 82.04.260.
Effective date—2025 c 420 ss 101-108 and 110-112: See note following RCW 82.04.230.
Tax preference performance statement exemption—Automatic expiration date exemption—Necessity of act—2025 c 420: See notes following RCW 82.04.230.
Tax preference performance statement exemption—Automatic expiration date exemption—2025 c 9: See note following RCW 82.04.281.
Tax preference performance statement exemption—Automatic expiration date exemption—2017 c 323: See note following RCW 82.04.040.
Contingent effective date—2010 c 106 ss 205 and 206: "If section 206 of this act takes effect, section 205 of this act expires on the date section 206 of this act takes effect." [ 2010 c 106 s 413.]
Effective date—2010 c 106: See note following RCW 35.102.145.
Effective date—Contingent effective date—2009 c 461: "(1) Except as provided in subsection (2) of this section, this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2009.
(2) Section 3 of this act takes effect if the contingency in *section 9 of this act occurs." [ 2009 c 461 s 10.]
*Reviser's note: See RCW 82.32.790.
Contingent expiration date—2009 c 461: "Section 2 of this act expires on the date that section 3 of this act takes effect." [ 2009 c 461 s 11.]
Contingent expiration date—2006 c 300 s 6: "Section 6 of this act expires on the date that section 7 of this act takes effect." [ 2006 c 300 s 14.]
Effective dates—Contingent effective date—2006 c 300: See note following RCW 82.04.261.
Intent—Effective date—2004 c 24: See notes following RCW 82.04.2909.
Findings—Intent—2003 c 149: See note following RCW 82.04.426.
Effective date—1998 c 343: See note following RCW 82.04.272.
Retroactive application—1994 c 112 s 1: "Section 1 of this act shall apply retroactively to July 1, 1993." [ 1994 c 112 s 5.]
Severability—Effective dates—Part headings, captions not law—1993 sp.s. c 25: See notes following RCW 82.04.230.
Effective date—1986 c 226: See note following RCW 82.16.010.
Application to preexisting contracts—1975 1st ex.s. c 90:See note following RCW 82.12.010.
Effective date—1975 1st ex.s. c 90: See note following RCW 82.04.050.
Effective dates—Severability—1971 ex.s. c 299: See notes following RCW 82.04.050.

catchline: Tax on printers, publishers, highway contractors, extracting or processing for hire, cold storage warehouse or storage warehouse operation, insurance general agents, government contractors—Cold storage warehouse defined—Storage warehouse defined—Periodical or magazine defined. (Effective until January 1, 2027.)


title: RCW 82.04.281

text:
(1) Except as provided in subsection (2) of this section, upon every person engaging within this state in the business of radio and television broadcasting, as to such persons the amount of tax on the business is equal to the gross income of the business multiplied by the rate of 0.484 percent.
(2) The gross income of a person engaging within this state in the business of radio and television broadcasting does not include revenues from network, national, and regional advertising computed either:
(a) As a standard deduction published by the department by rule, based on the national average thereof as reported by the United States census bureau's economic census, to be updated on September 30, 2025, and September 30th of every fifth year thereafter; or
(b) By itemization by the individual broadcasting station, and excluding that portion of revenue represented by the out-of-state audience computed as a ratio to the broadcasting station's total audience as measured by the 0.5 millivolt/meter signal strength contour for AM radio, the one millivolt/meter or 60 dBu signal strength contour for FM radio, the 28 dBu signal strength contour for television channels two through six, the 36 dBu signal strength contour for television channels seven through 13, and the 41 dBu signal strength contour for television channels 14 through 69 with delivery by wire, satellite, or any other means, if any.
(3) For the purposes of this section, "radio and television broadcasting" means delivery of audio, video, and written information by a person operating as a radio or television broadcasting station licensed, regulated, and issued a call sign by the federal communications commission including, but not limited to, delivery by wire, satellite, or any other means.
[ 2025 c 9 s 1.]
Notes:
Tax preference performance statement exemption—Automatic expiration date exemption—2025 c 9: "RCW 82.32.805 and 82.32.808 do not apply to this act." [ 2025 c 9 s 3.]

catchline: Tax on radio and television broadcasting.


title: RCW 82.04.285

text:
(1) Upon every person engaging within this state in the business of operating contests of chance; as to such persons, the amount of tax with respect to the business of operating contests of chance is equal to the gross income of the business derived from contests of chance multiplied by the rate of 1.5 percent.
(2) An additional tax is imposed on those persons subject to tax in subsection (1) of this section. The amount of the additional tax with respect to the business of operating contests of chance is equal to the gross income of the business derived from contests of chance multiplied by the rate of 0.2 percent through June 30, 2024, and 0.26 percent thereafter. The money collected under this subsection (2) shall be deposited in the problem gambling account created in RCW 41.05.751. This subsection does not apply to businesses operating contests of chance when the gross income from the operation of contests of chance is less than $50,000 per year.
(3)(a) For the purpose of this section, "contests of chance" means any contests, games, gaming schemes, or gaming devices, other than the state lottery as defined in RCW 67.70.010, in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill of the contestants may also be a factor in the outcome. The term includes social card games, bingo, raffle, and punchboard games, and pull-tabs as defined in chapter 9.46 RCW.
(b) The term does not include: (i) Race meet for the conduct of which a license must be secured from the Washington horse racing commission, (ii) "amusement game" as defined in RCW 9.46.0201, or (iii) any activity that is not subject to regulation by the gambling commission.
(4) "Gross income of the business" does not include the monetary value or actual cost of any prizes that are awarded, amounts paid to players for winning wagers, accrual of prizes for progressive jackpot contests, or repayment of amounts used to seed guaranteed progressive jackpot prizes.
[ 2023 c 284 s 4; 2014 c 97 s 303; 2005 c 369 s 5.]
Notes:
Findings—Intent—Effective date—2023 c 284: See notes following RCW 41.05.750.
Findings—Intent—Severability—Effective date—2005 c 369: See notes following RCW 41.05.750.
PDF
RCW 82.04.285
Tax on contests of chance. (Effective January 1, 2027.)
(1) Upon every person engaging within this state in the business of operating contests of chance; as to such persons, the amount of tax with respect to the business of operating contests of chance is equal to the gross income of the business derived from contests of chance multiplied by the rate of 1.8 percent.
(2) An additional tax is imposed on those persons subject to tax in subsection (1) of this section. The amount of the additional tax with respect to the business of operating contests of chance is equal to the gross income of the business derived from contests of chance multiplied by the rate of 0.2 percent through June 30, 2024, and 0.26 percent thereafter. The money collected under this subsection (2) shall be deposited in the problem gambling account created in RCW 41.05.751. This subsection does not apply to businesses operating contests of chance when the gross income from the operation of contests of chance is less than $50,000 per year.
(3)(a) For the purpose of this section, "contests of chance" means any contests, games, gaming schemes, or gaming devices, other than the state lottery as defined in RCW 67.70.010, in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill of the contestants may also be a factor in the outcome. The term includes social card games, bingo, raffle, and punchboard games, and pull-tabs as defined in chapter 9.46 RCW.
(b) The term does not include: (i) Race meet for the conduct of which a license must be secured from the Washington horse racing commission, (ii) "amusement game" as defined in RCW 9.46.0201, or (iii) any activity that is not subject to regulation by the gambling commission.
(4) "Gross income of the business" does not include the monetary value or actual cost of any prizes that are awarded, amounts paid to players for winning wagers, accrual of prizes for progressive jackpot contests, or repayment of amounts used to seed guaranteed progressive jackpot prizes.
[ 2025 c 420 s 108; 2023 c 284 s 4; 2014 c 97 s 303; 2005 c 369 s 5.]
Notes:
Effective date—2025 c 420 ss 101-108 and 110-112: See note following RCW 82.04.230.
Tax preference performance statement exemption—Automatic expiration date exemption—Necessity of act—2025 c 420: See notes following RCW 82.04.230.
Findings—Intent—Effective date—2023 c 284: See notes following RCW 41.05.750.
Findings—Intent—Severability—Effective date—2005 c 369: See notes following RCW 41.05.750.

catchline: Tax on contests of chance. (Effective until January 1, 2027.)


title: RCW 82.04.286

text:
(1) Upon every person engaging within this state in the business of conducting race meets for the conduct of which a license must be secured from the Washington horse racing commission; as to such persons, the amount of tax with respect to the business of parimutuel wagering is equal to the gross income of the business derived from parimutuel wagering multiplied by the rate of 0.2 percent through June 30, 2024, and 0.26 percent thereafter. The money collected under this section shall be deposited in the problem gambling account created in RCW 41.05.751.
(2) For purposes of this section, "gross income of the business" does not include amounts paid to players for winning wagers, or taxes imposed or other distributions required under chapter 67.16 RCW.
(3) The tax imposed under this section is in addition to any tax imposed under chapter 67.16 RCW.
[ 2023 c 284 s 5; 2005 c 369 s 6.]
Notes:
Findings—Intent—Effective date—2023 c 284: See notes following RCW 41.05.750.
Findings—Intent—Severability—Effective date—2005 c 369: See notes following RCW 41.05.750.

catchline: Tax on horse races.


title: RCW 82.04.287

text:
(1) Upon every person engaging within the state in the business of manufacturing alternative jet fuel; as to such persons, the amount of the tax with respect to such business is, in the case of manufacturers, equal to the value of the product manufactured, or in the case of processors for hire, equal to the gross income of the business, multiplied by the rate of 0.275 percent.
(2) Upon every person engaging in making sales, at retail or wholesale, of manufactured alternative jet fuel; as to such persons, the amount of the tax with respect to such business is equal to the gross proceeds of sales of the alternative jet fuel, multiplied by the rate of 0.275 percent.
(3) For the purposes of this section, "alternative jet fuel" means a fuel that can be blended and used with conventional petroleum jet fuels without the need to modify aircraft engines and existing fuel distribution infrastructure and that has lower greenhouse gas emissions based on a full life-cycle analysis when compared to conventional petroleum jet fuel for which it is capable as serving as a substitute, as certified by the department of ecology using the methods for determining the carbon intensity of fuels under chapter 70A.535 RCW. "Alternative jet fuel" includes jet fuels derived from coprocessed feedstocks at a conventional petroleum refinery as certified by the department of ecology using the methods for determining the carbon intensity of fuels under chapter 70A.535 RCW.
(4) A person reporting under the tax rate provided in this section must file a complete annual tax performance report with the department under RCW 82.32.534.
(5)(a) The tax rate under subsections (1) and (2) of this section takes effect on the first day of the first calendar quarter following the month in which the department receives notice from the department of ecology that there are one or more facilities operating in this state with a cumulative production capacity of at least 20,000,000 gallons of alternative jet fuel each year, as required in RCW 70A.535.150.
(b) The tax rate expires nine calendar years after the close of the calendar year in which the tax rate under subsections (1) and (2) of this section takes effect.
[ 2023 c 232 s 9.]
Notes:
Tax preference performance statement—2023 c 232 ss 9-12: "(1) This section is the tax preference performance statement for the tax preferences contained in sections 9 through 12, chapter 232, Laws of 2023. This performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or to be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes these tax preferences as ones intended to improve industry competitiveness as indicated in RCW 82.32.808(2)(b).
(3) It is the legislature's specific public policy objective to encourage the production and use of alternative jet fuels. It is also the legislature's intent to support the development of the alternative jet fuels industry in Washington by providing targeted tax relief for such businesses.
(4) The legislature intends to extend the expiration date of the tax preferences contained in this act if a review finds:
(a) An increase in the production and use of alternative jet fuels in Washington by persons claiming the tax preferences in this act;
(b) That the production and use of alternative jet fuels in this state does not result in additional pollution including, but not limited to, pollution from per- and polyfluoroalkyl substances, noxious gases, ultrafine particles, lead, or other metals; and
(c) That the alternative jet fuel industry has created measurable economic growth in Washington.
(5) The review conducted by the joint legislative audit and review committee must include a racial equity analysis on air travel-related pollution in communities near an international airport owned by a port district in a county with a population greater than 1,500,000.
(6) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may access and use data from an international airport owned by a port district in a county with a population greater than 1,500,000, the University of Washington, reports compiled by the Washington State University pursuant to section 7 of this act, and any other data collected by the state as it deems necessary.
(7) The joint legislative audit and review committee must complete a preliminary report by December 1, 2032." [ 2023 c 232 s 8.]
Effective date—2023 c 232 ss 9-12: "Sections 9 through 12 of this act take effect July 1, 2024." [ 2023 c 232 s 15.]
Automatic expiration date exemption—2023 c 232: "RCW 82.32.805 does not apply to this act." [ 2023 c 232 s 14.]
Intent—2023 c 232: See note following RCW 70A.535.010.

catchline: Tax on alternative jet fuel.


title: RCW 82.04.288

text:
(1) Beginning January 1, 2026, in addition to all other taxes imposed under this chapter, persons must pay a surcharge on Washington taxable income over $250,000,000 in a calendar year.
(2) The rate of the tax is 0.5 percent of the amount of Washington taxable income over $250,000,000.
(3)(a) Any Washington taxable income subject to the tax in RCW 82.04.29004 is exempt from the surcharge imposed in this section.
(b)(i) Any Washington taxable income subject to the manufacturing tax rates in RCW 82.04.240, 82.04.2404, 82.04.241, 82.04.260, 82.04.2602, 82.04.287, 82.04.2909, or 82.04.294(1) is exempt from the surcharge imposed in this section.
(ii) Any Washington taxable income attributable to the wholesale or retail sale of products so manufactured by a person subject to the manufacturing tax rates specified in (b)(i) of this subsection (3) is exempt from the surcharge imposed in this section.
(iii) Any Washington taxable income attributable to retail sales that are exempt from the imposition of sales tax in RCW 82.08.0293, 82.08.0297, and 82.08.0281 is exempt from the surcharge imposed in this section.
(iv) Any Washington taxable income subject to the tax rates in RCW 82.04.260(12) is exempt from the surcharge imposed in this section.
(v) Any Washington taxable income attributable to wholesale sales of food and food ingredients, as defined in RCW 82.08.0293, is exempt from the surcharge imposed in this section provided that it is sold by a wholesaler that is not affiliated with either the retailer or manufacturer, or both, of such food and food ingredients. The exemption in this subsection (3)(b)(v) does not apply to Washington taxable income attributable to the wholesale sale of soft drinks, bottled water, or dietary supplements, as they are defined in RCW 82.08.0293.
(vi) Any Washington taxable income attributable to the wholesale or retail sale of petroleum products by a person who is both located in a state other than Washington and the owner of such materials processed for it in Washington by an affiliated processor for hire subject to the rate in RCW 82.04.280(1)(c), is exempt from the surcharge imposed in this section. For the purposes of this subsection (3)(b)(vi), "petroleum product" has the same meaning as in RCW 82.21.020.
(4)(a) The surcharge imposed under this section does not apply to taxable income for which a credit is allowed under RCW 82.04.440.
(b) The surcharge imposed under this section does not apply to a person engaged in business primarily as a farmer or eligible apiarist as defined in RCW 82.04.213.
(c) The surcharge imposed under this section does not apply to a person subject to the tax imposed pursuant to RCW 82.04.299.
(d) The surcharge imposed under this section does not apply to taxable income for wholesale and retail transactions of fuel as defined in RCW 82.38.020.
(5) Any income that is exempt from the surcharge imposed under this section is not included in the calculation of Washington taxable income in subsection (1) of this section.
(6) For the purposes of this section, the following definitions apply:
(a) "Affiliated" means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person;
(b) "Control" means the possession, directly or indirectly, of more than 50 percent of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise.
(7) This section expires December 31, 2029.
[ 2026 c 238 s 1104; 2025 c 420 s 201.]
Notes:
Automatic expiration date and tax preference performance statement exemption—Effective date—Severability—2026 c 238 ss 1101-1104: See notes following RCW 82.08.710.
Findings—Intent—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.
Effective date—2025 c 420 ss 114, 201, 301, 401, and 402: See note following RCW 82.32.875.
Tax preference performance statement exemption—Automatic expiration date exemption—Necessity of act—2025 c 420: See notes following RCW 82.04.230.
PDF
RCW 82.04.288
Surcharge on Washington taxable income over $250,000,000—Exemptions. (Effective January 1, 2029, until December 31, 2029.)
(1) Beginning January 1, 2026, in addition to all other taxes imposed under this chapter, persons must pay a surcharge on Washington taxable income over $250,000,000 in a calendar year.
(2) The rate of the tax is 0.5 percent of the amount of Washington taxable income over $250,000,000.
(3)(a) Any Washington taxable income subject to the tax in RCW 82.04.29004 is exempt from the surcharge imposed in this section.
(b)(i) Any Washington taxable income subject to the manufacturing tax rates in RCW 82.04.240, 82.04.2404, 82.04.241, 82.04.260, 82.04.2602, 82.04.287, 82.04.2909, or 82.04.294(1) is exempt from the surcharge imposed in this section.
(ii) Any Washington taxable income attributable to the wholesale or retail sale of products so manufactured by a person subject to the manufacturing tax rates specified in (b)(i) of this subsection (3) is exempt from the surcharge imposed in this section.
(iii) Any Washington taxable income attributable to retail sales that are exempt from the imposition of sales tax in RCW 82.08.0293, 82.08.0297, and 82.08.0281 is exempt from the surcharge imposed in this section.
(iv) Any Washington taxable income subject to the tax rates in RCW 82.04.260(12) is exempt from the surcharge imposed in this section.
(v) Any Washington taxable income attributable to wholesale sales of food and food ingredients, as defined in RCW 82.08.0293, is exempt from the surcharge imposed in this section provided that it is sold by a wholesaler that is not affiliated with either the retailer or manufacturer, or both, of such food and food ingredients. The exemption in this subsection (3)(b)(v) does not apply to Washington taxable income attributable to the wholesale sale of soft drinks, bottled water, or dietary supplements, as they are defined in RCW 82.08.0293.
(vi) Any Washington taxable income attributable to the wholesale or retail sale of petroleum products by a person who is both located in a state other than Washington and the owner of such materials processed for it in Washington by an affiliated processor for hire subject to the rate in RCW 82.04.280(1)(c), is exempt from the surcharge imposed in this section. For the purposes of this subsection (3)(b)(vi), "petroleum product" has the same meaning as in RCW 82.21.020.
(vii) Any Washington taxable income received by a hospital as defined in RCW 70.41.020 is exempt from the surcharge imposed by this section.
(viii) Any Washington taxable income attributable to the warehousing and reselling of drugs for human use pursuant to a prescription is exempt from the surcharge imposed by this section. For the purposes of this subsection (3)(b)(viii), the following definitions apply:
(A) "Prescription" has the same meaning as in RCW 82.08.0281.
(B) "Warehousing and reselling drugs for human use pursuant to a prescription" means the buying of drugs for human use pursuant to a prescription from a manufacturer or another wholesaler and reselling of the drugs to persons selling at retail or to hospitals, clinics, health care providers, or other providers of health care services by a wholesaler or retailer who is registered with the federal drug enforcement administration and licensed by the pharmacy quality assurance commission.
(ix) Any Washington taxable income attributable to the provision of health care services by a health care provider licensed under Title 18 RCW is exempt from the surcharge imposed by this section.
(4)(a) The surcharge imposed under this section does not apply to taxable income for which a credit is allowed under RCW 82.04.440.
(b) The surcharge imposed under this section does not apply to a person engaged in business primarily as a farmer or eligible apiarist as defined in RCW 82.04.213.
(c) The surcharge imposed under this section does not apply to a person subject to the tax imposed pursuant to RCW 82.04.299.
(d) The surcharge imposed under this section does not apply to taxable income for wholesale and retail transactions of fuel as defined in RCW 82.38.020.
(5) Any income that is exempt from the surcharge imposed under this section is not included in the calculation of Washington taxable income in subsection (1) of this section.
(6) For the purposes of this section, the following definitions apply:
(a) "Affiliated" means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person;
(b) "Control" means the possession, directly or indirectly, of more than 50 percent of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise.
(7) This section expires December 31, 2029.
[ 2026 c 238 s 1104; 2026 c 238 s 911; 2025 c 420 s 201.]
Notes:
Reviser's note: This section was amended by 2026 c 238 s 911 and by 2026 c 238 s 1104, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Automatic expiration date and tax preference performance statement exemption—Effective date—Severability—2026 c 238 ss 1101-1104: See notes following RCW 82.08.710.
Effective date—2026 c 238 ss 909-911: See note following RCW 82.04.4451.
Findings—Intent—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.
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.
Effective date—2025 c 420 ss 114, 201, 301, 401, and 402: See note following RCW 82.32.875.
Tax preference performance statement exemption—Automatic expiration date exemption—Necessity of act—2025 c 420: See notes following RCW 82.04.230.

catchline: Surcharge on Washington taxable income over $250,000,000—Exemptions. (Effective until January 1, 2029.)


title: RCW 82.04.289

text:
(1) For amounts received during the chapter 422, Laws of 2025 transition period, a person with a qualifying existing contract may elect to treat such amounts as gross income of the business subject to the tax under either RCW 82.04.250 or 82.04.290(2).
(2) If a person with a qualifying existing contract makes no election under subsection (1) of this section during the transition period, amounts received from performing the services of that contract during the transition period are gross income of the business subject to the tax under RCW 82.04.250.
(3) If a person either elects to treat amounts received under a qualifying existing contract as gross income of the business subject to the tax under RCW 82.04.250, gross income of the business subject to the tax under RCW 82.04.250(2), or both, the amounts are subject to the tax imposed under chapter 82.08 RCW.
(4) For the purposes of this section:
(a) "Altered" means any of the following:
(i) Materially or substantively changed;
(ii) Amended; or
(iii) Renewed;
(b) "Qualifying existing contract" means a contract that meets all the following criteria:
(i) The contract was signed and executed before October 1, 2025;
(ii) The underlying services provided continued after October 1, 2025;
(iii) The underlying services of that contract would be services defined as a retail sale under *RCW 82.04.050(3) (g) through (l) beginning October 1, 2025; and
(iv) The contract was not altered during the transition period; and
(c) "Transition period" and "chapter 422, Laws of 2025 transition period" mean the period of time beginning October 1, 2025, and ending on March 31, 2026.
(5) This section expires July 1, 2031.
[ 2026 c 250 s 22.]
Notes:
*Reviser's note: RCW 82.04.050 was amended by 2026 c 238 s 1001 (effective January 1, 2029), 2026 c 238 s 1101, and 2026 c 250 s 2, changing subsection lettering.
Retroactive application—2026 c 250 ss 2-4, 8, 10, 12-18, and 22: See note following RCW 82.04.050.

catchline: Qualifying existing contracts. (Expires July 1, 2031.)


title: RCW 82.04.290

text:
(1) Upon every person engaging within this state in the business of providing qualifying international investment management services, as to such persons, the amount of tax with respect to such business is equal to the gross income or gross proceeds of sales of the business multiplied by a rate of 0.275 percent.
(2)(a) Upon every person engaging within this state in any business activity other than or in addition to an activity taxed explicitly under this chapter; as to such persons the amount of tax on account of such activities is equal to the gross income of the business multiplied by the rate of:
(i) 1.75 percent for any person whose gross income of the business subject to the tax imposed under this subsection (2), for the immediately preceding calendar year, was equal to or greater than $1,000,000 and less than $5,000,000 unless: (A) The person is affiliated with one or more other persons; and (B) the aggregate gross income of the business subject to the tax imposed under this subsection (2) for all affiliated persons was greater than or equal to $5,000,000 for the immediately preceding calendar year;
(ii) 1.5 percent for:
(A) Any person subject to the surcharge imposed under RCW 82.04.299;
(B) Any person whose gross income of the business subject to the tax imposed under this subsection (2), for the immediately preceding calendar year, was less than $1,000,000, unless (I) the person is affiliated with one or more other persons, and (II) the aggregate gross income of the business subject to the tax imposed under this subsection (2) for all affiliated persons was greater than or equal to $1,000,000 for the immediately preceding calendar year; and
(C) Hospitals as defined in RCW 70.41.020, including any hospital that comes within the scope of chapter 71.12 RCW if the hospital is also licensed under chapter 70.41 RCW. This subsection (2)(a)(ii)(C) must not be construed as modifying RCW 82.04.260(10); or
(iii) 2.1 percent.
(b) This subsection (2) includes, among others, and without limiting the scope hereof (whether or not title to materials used in the performance of such business passes to another by accession, confusion or other than by outright sale), persons engaged in the business of rendering any type of service which does not constitute a "sale at retail" or a "sale at wholesale." The value of advertising, demonstration, and promotional supplies and materials furnished to an agent by his or her principal or supplier to be used for informational, educational, and promotional purposes is not considered a part of the agent's remuneration or commission and is not subject to taxation under this section.
(c) 14.3 percent of the revenues collected under (a)(i) and (iii) of this subsection (2) must be deposited into the workforce education investment account created in RCW 43.79.195.
(d)(i) To aid in the effective administration of this subsection (2), the department may require a person claiming to be subject to the 1.75 percent tax rate under (a)(i) of this subsection (2) or the 1.5 percent tax rate under (a)(ii)(B) of this subsection (2) to identify all of the person's affiliates, including their department tax registration number or unified business identifier number, as may be applicable, or to certify that the person is not affiliated with any other person. Requests under this subsection (2)(d)(i) must be in writing and may be made electronically.
(ii) If the department establishes, by clear, cogent, and convincing evidence, that a person, with intent to evade the additional taxes due under either the 1.75 percent tax rate in (a)(i) of this subsection (2) or the 2.1 percent tax rate in (a)(iii) of this subsection (2), failed to provide the department with complete and accurate information in response to a written request under (d)(i) of this subsection (2) within 30 days of such request, the person is ineligible for the lesser applicable tax rate in this subsection (2) for the entire current calendar year and the following four calendar years. However, the department must waive the provisions of this subsection (2)(d)(ii) for any tax reporting period that the person is otherwise eligible for the 1.75 percent tax rate in (a)(i) of this subsection (2) or the 1.5 percent tax rate in (a)(ii) of this subsection (2) if (A) the department has not previously determined that the person failed to fully comply with (d)(i) of this subsection (2), and (B) within 30 days of the notice of additional tax due as a result of the person's failure to fully comply with (d)(i) of this subsection (2) the department determines that the person has come into full compliance with (d)(i) of this subsection (2). This subsection (2)(d) applies only with respect to persons claiming entitlement to the 1.5 percent tax rate solely by reason of (a)(ii)(B) of this subsection (2).
(e) For the purposes of (a)(i) or (ii)(B) of this subsection (2), if a taxpayer is subject to the reconciliation provisions of RCW 82.04.462(4), and calculates gross income of the business subject to the tax imposed under this subsection (2) for the immediately preceding calendar year, or aggregate gross income of the business subject to the tax imposed under this subsection (2) for the immediately preceding calendar year for all affiliated persons, based on incomplete information, the taxpayer must correct the reporting for the current calendar year when complete information for the immediately preceding calendar year is available.
(f) For purposes of this subsection (2), the definitions in this subsection (2)(f) apply:
(i) "Affiliate" means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person; and
(ii) "Control" means the possession, directly or indirectly, of more than 80 percent of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise.
(3)(a) Until July 1, 2040, upon every person engaging within this state in the business of performing aerospace product development for others, as to such persons, the amount of tax with respect to such business is equal to the gross income of the business multiplied by a rate of 0.9 percent.
(b) A person reporting under the tax rate provided in this subsection (3) must file a complete annual report with the department under RCW 82.32.534.
(c) "Aerospace product development" has the meaning as provided in RCW 82.04.4461.
(4)(a) Except as provided in (b) of this subsection (4), upon every processor engaging within this state in payment card processing activities, as to such persons, the amount of tax with respect to such business is equal to the gross income of the business from such payment card processing activities multiplied by the rate of 3.1 percent.
(b)(i) This subsection (4) does not apply to payment card processing activities involving credit, debit, or prepaid card transactions in which:
(A) The processor:
(I) Also operates the payment network or is affiliated with the operator of the payment network; and
(II) Makes related payments to an affiliated financial institution; or
(B) The payment card processing company is also the issuer.
(ii) Payment card processing activities excluded from this subsection (4) are subject to tax under subsection (2) of this section without any deduction under RCW 82.04.43397.
(c) For purposes of this subsection (4), the following definitions apply:
(i) "Affiliated" has the same meaning as in RCW 82.04.299.
(ii) "Financial institution" has the same meaning as in RCW 82.04.080.
(iii) "Issuer" has the same meaning as in RCW 82.04.43397.
(iv) "Payment card processing activities" means services related to directly or indirectly acquiring, processing, or routing electronic transactions for issuers, acquirers, payment networks, or merchants. "Payment card processing activities" does not include:
(A) Issuing and authorizing the use of payment cards;
(B) Authorization, clearance, and settlement of electronic transactions by a payment network; or
(C) Retail services or the retail sale of hardware or software.
(v) "Payment network" has the same meaning as in RCW 82.04.43397.
(vi) "Processor" has the same meaning as in RCW 82.04.43397.
(5) The rates in subsection (2)(a) of this section apply upon every person in this state engaging in the business of renting or leasing individual storage space at self-service storage facilities as defined in RCW 19.150.010.
[ 2025 c 423 s 301; 2025 c 420 s 109; 2025 c 401 s 3; 2020 c 2 s 3; 2019 c 426 s 2; 2014 c 97 s 404; (2014 c 97 s 403 expired July 9, 2014); 2013 3rd sp.s. c 2 s 8; 2013 c 23 s 314; 2011 c 174 s 101; 2008 c 81 s 6; 2005 c 369 s 8; 2004 c 174 s 2; 2003 c 343 s 2; 2001 1st sp.s. c 9 s 6; (2001 1st sp.s. c 9 s 4 expired July 1, 2001). Prior: 1998 c 343 s 4; 1998 c 331 s 2; 1998 c 312 s 8; 1998 c 308 s 5; 1998 c 308 s 4; 1997 c 7 s 2; 1996 c 1 s 2; 1995 c 229 s 3; 1993 sp.s. c 25 s 203; 1985 c 32 s 3; 1983 2nd ex.s. c 3 s 2; 1983 c 9 s 2; 1983 c 3 s 212; 1971 ex.s. c 281 s 8; 1970 ex.s. c 65 s 4; 1969 ex.s. c 262 s 39; 1967 ex.s. c 149 s 14; 1963 ex.s. c 28 s 2; 1961 c 15 s 82.04.290; prior: 1959 ex.s. c 5 s 5; 1955 c 389 s 49; prior: 1953 c 195 s 2; 1950 ex.s. c 5 s 1, part; 1949 c 228 s 1, part; 1943 c 156 s 1, part; 1941 c 178 s 1, part; 1939 c 225 s 1, part; 1937 c 227 s 1, part; 1935 c 180 s 4, part; Rem. Supp. 1949 s 8370-4, part.]
Notes:
Reviser's note: This section was amended by 2025 c 401 s 3, 2025 c 420 s 109, and by 2025 c 423 s 301, without reference to one another. All amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Effective date—2025 c 423 ss 301 and 302: "Sections 301 and 302 of this act take effect April 1, 2026." [ 2025 c 423 s 405.]
Finding—Intent—Necessity of act—2025 c 423: See notes following RCW 82.04.260.
Effective date—2025 c 420 ss 109 and 202: "Sections 109 and 202 of this act take effect October 1, 2025." [ 2025 c 420 s 508.]
Tax preference performance statement exemption—Automatic expiration date exemption—Necessity of act—2025 c 420: See notes following RCW 82.04.230.
Intent—Tax preference performance statement exemption—Automatic expiration date exemption—Effective date—2025 c 401: See notes following RCW 82.04.43397.
Application—2020 c 2 s 3: "Section 3 of this act applies beginning with gross income of the business, as defined in RCW 82.04.080, received or accrued by taxpayers, on or after April 1, 2020." [ 2020 c 2 s 9.]
Tax preference performance statement exemption—Automatic expiration date exemption—2020 c 2: "The provisions of RCW 82.32.805 and 82.32.808 do not apply to this act." [ 2020 c 2 s 6.]
Effective dates—2020 c 2: "(1) Except as otherwise provided in this section, this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [February 10, 2020].
(2) Sections 1 through 3 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect April 1, 2020." [ 2020 c 2 s 7.]
Findings—Intent—2019 c 426 ss 2 and 3: "In 1995, the legislature enacted a business and occupation tax rate for persons providing international investment management services. The legislature finds that the original intent of this tax rate was to reduce a competitive disadvantage for a limited number of firms providing international investment management services. The fiscal note for the bill stated that "only a very limited taxpayer group would benefit from the reduced rate." The legislature further finds that as a result of the adoption of economic nexus; a single factor, market-based apportionment methodology; and significant ambiguity in the statute governing the qualifications for the tax rate; a much larger number of businesses are claiming the tax rate than was contemplated in 1995. Therefore, the legislature intends in sections 2 and 3 of this act to clarify the scope of activities and persons eligible for the tax rate to more closely align with the legislature's original intent." [ 2019 c 426 s 1.]
Automatic expiration date and tax preference performance statement exemption—2019 c 426 ss 2 and 3: "The provisions of RCW 82.32.805 and 82.32.808 do not apply to sections 2 and 3 of this act." [ 2019 c 426 s 9.]
Effective date—2019 c 426 ss 2 and 3: "Sections 2 and 3 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2019." [ 2019 c 426 s 10.]
Contingent expiration date—2014 c 97 ss 401 and 403: See note following RCW 82.04.250.
Contingent effective date—2013 3rd sp.s. c 2: See RCW 82.32.850.
Findings—Intent—2013 3rd sp.s. c 2: See note following RCW 82.32.850.
Findings—Savings—Effective date—2008 c 81: See notes following RCW 82.08.975.
Findings—Intent—Severability—Effective date—2005 c 369: See notes following RCW 41.05.750.
Effective date—2004 c 174: See note following RCW 82.04.2908.
Expiration dates—2001 1st sp.s. c 9: "(1) Sections 2 and 4 of this act expire July 1, 2001.
(2) Section 5 of this act expires July 1, 2003.
(3) Section 8 of this act expires July 22, 2001." [ 2001 1st sp.s. c 9 s 10.]
Effective dates—2001 1st sp.s. c 9: See note following RCW 82.04.298.
Effective date—1998 c 343: See note following RCW 82.04.272.
Effective date—1998 c 331: See note following RCW 82.04.2907.
Effective date—Savings—1998 c 312: See notes following RCW 82.04.332.
Effective dates—1998 c 308: See note following RCW 82.04.050.
Savings—Effective date—1997 c 7: See notes following RCW 82.04.255.
Effective date—1996 c 1: See note following RCW 82.04.255.
Effective date—1995 c 229: See note following RCW 82.04.293.
Severability—Effective dates—Part headings, captions not law—1993 sp.s. c 25: See notes following RCW 82.04.230.
Construction—Severability—Effective dates—1983 2nd ex.s. c 3: See notes following RCW 82.04.255.
Construction—Severability—Effective date—1983 c 9: See notes following RCW 82.04.255.

catchline: Tax on service and other activities.


title: RCW 82.04.29002

text:
(1) Beginning May 1, 2010, through June 30, 2013, an additional rate of tax of 0.30 percent is added to the rate provided for in RCW 82.04.255, 82.04.285, and 82.04.290(2)(a).
(2)(a) The additional rate in subsection (1) of this section does not apply to persons engaging within this state in business as a hospital. "Hospital" has the meaning provided in chapter 70.41 RCW but also includes any hospital that comes within the scope of chapter 71.12 RCW if the hospital is also licensed under chapter 70.41 RCW.
(b) The additional rate in subsection (1) of this section does not apply to amounts received from performing scientific research and development services including but not limited to research and development in the physical, engineering, and life sciences (such as agriculture, bacteriological, biotechnology, chemical, life sciences, and physical science research and development laboratories or services).
[ 2010 1st sp.s. c 23 s 1101.]
Notes:
Effective date—2010 1st sp.s. c 23: See note following RCW 82.32.655.
Findings—Intent—2010 1st sp.s. c 23: See notes following RCW 82.04.220.

catchline: Additional tax on certain business and service activities.


title: RCW 82.04.29004

text:
(1)(a) From January 1, 2020, through September 30, 2025, in addition to any other taxes imposed under this chapter, an additional tax is imposed on specified financial institutions. The additional tax is equal to the gross income of the business taxable under RCW 82.04.290 (2) and (4) multiplied by the rate of 1.2 percent.
(b) Beginning October 1, 2025, in addition to any other taxes imposed under this chapter, an additional tax is imposed on specified financial institutions. The additional tax is equal to the gross income of the business taxable under RCW 82.04.290 (2) and (4) multiplied by the rate of 1.5 percent.
(2) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Affiliated" means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person. For purposes of this subsection (2)(a), "control" means the possession, directly or indirectly, of more than 50 percent of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting shares, by contract, or otherwise.
(b) "Consolidated financial institution group" means all financial institutions that are affiliated with each other.
(c) "Consolidated financial statement" means a consolidated financial institution group's consolidated reports of condition and income filed with the federal financial institutions examination council, or successor agency.
(d) "Financial institution" means:
(i) Any corporation or other business entity chartered under Titles 30A, 30B, 31, 32, and 33 RCW, or registered under the federal bank holding company act of 1956, as amended, or registered as a savings and loan holding company under the federal national housing act, as amended;
(ii) A national bank organized and existing as a national bank association pursuant to the provisions of the national bank act, 12 U.S.C. Sec. 21 et seq.;
(iii) A savings association or federal savings bank as defined in the federal deposit insurance act, 12 U.S.C. Sec. 1813(b)(1);
(iv) Any bank or thrift institution incorporated or organized under the laws of any state;
(v) Any corporation organized under the provisions of 12 U.S.C. Sec. 611 through 631;
(vi) Any agency or branch of a foreign depository as defined in 12 U.S.C. Sec. 3101;
(vii) A production credit association organized under the federal farm credit act of 1933, all of whose stock held by the federal production credit corporation has been retired;
(viii) Any corporation or other business entity who receives gross income taxable under RCW 82.04.290, and whose voting interests are more than 50 percent owned, directly or indirectly, by any person or business entity described in (d)(i) through (vii) of this subsection other than an insurance company liable for the insurance premiums tax under RCW 48.14.020 or any other company taxable under chapter 48.14 RCW;
(ix)(A) A corporation or other business entity that receives more than 50 percent of its total gross income for federal income tax purposes from finance leases. For purposes of this subsection, a "finance lease" means a lease that meets two requirements:
(I) It is the type of lease permitted to be made by national banks (see 12 U.S.C. Sec. 24(7) and (10), comptroller of the currency regulations, part 23, leasing (added by 56 C.F.R. Sec. 28314, June 20, 1991, effective July 22, 1991), and regulation Y of the federal reserve system 12 C.F.R. Part 225.25, as amended); and
(II) It is the economic equivalent of an extension of credit, i.e., the lease is treated by the lessor as a loan for federal income tax purposes. In no event does a lease qualify as an extension of credit where the lessor takes depreciation on such property for federal income tax purposes.
(B) For this classification to apply, the average of the gross income in the current tax year and immediately preceding two tax years must satisfy the more than 50 percent requirement;
(x) Any other person or business entity, other than an insurance general agent taxable under RCW 82.04.280(1)(e), an insurance business exempt from the business and occupation tax under RCW 82.04.320, a real estate broker taxable under RCW 82.04.255, a securities dealer or international investment management company taxable under RCW 82.04.290(2), that receives more than 50 percent of its gross receipts from activities that a person described in (d)(ii) through (vii) and (ix) of this subsection is authorized to transact.
(e)(i) "Specified financial institution" means a financial institution that is a member of a consolidated financial institution group that reported on its consolidated financial statement for the previous calendar year annual net income of at least $1,000,000,000, not including net income attributable to noncontrolling interests, as the terms "net income" and "noncontrolling interest" are used in the consolidated financial statement.
(ii) If financial institutions are no longer required to file consolidated financial statements, "specified financial institution" means any person that was subject to the additional tax in this section in at least two of the previous four calendar years.
(3) The department must notify the fiscal committees of the legislature if financial institutions are no longer required to file consolidated financial statements.
(4) To aid in the effective administration of the additional tax imposed in this section, the department may require a person believed to be a specified financial institution to disclose whether it is a member of a consolidated financial institution group and, if so, to identify all other members of its consolidated financial institution group. A person failing to comply with this subsection is deemed to have intended to evade tax payable under this section and is subject to the penalty in RCW 82.32.090(7) on any tax due under this section by the person and any financial institution affiliated with the person.
(5) Taxes collected under this section must be deposited into the general fund.
[ 2026 c 250 s 6. Prior: 2025 c 423 s 201; 2025 c 420 s 202; 2025 c 401 s 4; 2019 c 420 s 2.]
Notes:
Retroactive application—2026 c 250 ss 5 and 6: See note following RCW 82.04.299.
Effective date—2025 c 423 ss 101, 103, 104, 105, 201, and 202: See note following RCW 82.04.260.
Finding—Intent—Necessity of act—2025 c 423: See notes following RCW 82.04.260.
Effective date—2025 c 420 ss 109 and 202: See note following RCW 82.04.290.
Tax preference performance statement exemption—Automatic expiration date exemption—Necessity of act—2025 c 420: See notes following RCW 82.04.230.
Intent—Tax preference performance statement exemption—Automatic expiration date exemption—Effective date—2025 c 401: See notes following RCW 82.04.43397.
Finding—2019 c 420: "The legislature finds that in the decade since the great recession, some economic sectors have rebounded, stronger than ever, while many Washington families struggle to afford basic necessities, all while also carrying the burden of funding schools and essential services. The wealth disparity in the country between the wealthy few and the lowest income families is wider than in any other developed nation and continues to grow. Additionally, Washington's tax system disproportionately impacts those with the least ability to pay. As a percentage of household income, middle-income families in Washington pay two to four times the amount of taxes as compared to top earners in the state. Low-income Washington families pay six times more in taxes than the wealthiest residents. The legislature concludes that those wealthy few who have profited the most from the recent economic expansion can contribute to the essential services and programs all Washington families need." [ 2019 c 420 s 1.]

catchline: Additional tax on financial institutions.


title: RCW 82.04.29005

text:
(1) Amounts received as interest on loans originated by a high volume mortgage lender, or an affiliate of such person, and primarily secured by first mortgages or trust deeds on nontransient residential properties are subject to tax under RCW 82.04.290(2)(a).
(2) For the purposes of this section, a person is a high volume mortgage lender if:
(a) The person is a specified financial institution as defined in RCW 82.04.29004; or
(b) The person has an annual closed mortgage origination volume of at least $10,000,000,000 reported under the federal home mortgage disclosure act in the previous calendar year.
(3) For purposes of this section:
(a) "Affiliate" means a person is affiliated with another person, and "affiliated" has the same meaning as in RCW 82.04.645; and
(b) "Interest" has the same meaning as in RCW 82.04.4292 and also includes servicing fees described in RCW 82.04.4292(4).
[ 2026 c 131 s 3; 2012 2nd sp.s. c 6 s 101.]
Notes:
Intent—Findings—2026 c 131: "(1) It is the intent of this act to restore funding to Washington state's wildfire response, forest restoration, and community resilience account ("wildfire response account").
(2) The legislature finds that:
(a) When the wildfire response account was created by chapter 298, Laws of 2021 (Second Substitute House Bill No. 1168, RCW 76.04.505), the legislature committed a biennial investment of $125 million to this account to fund wildfire preparedness. The account was created without a dedicated revenue source. Funding for the wildfire response account was reduced by 50 percent at the start of the 2025-2027 fiscal biennium. In a public statement of July 25, 2025, at the site of the Burdoin fire near the Columbia River Gorge, Governor Ferguson said "this is a reminder of the need for those resources."
(b) In RCW 76.04.505, the legislature found that "[fire] suppression costs are only a small portion of the impact [of wildfires] to the state budget." The legislature finds that funding wildfire preparedness activities under RCW 76.04.511(3) saves the state substantially in post facto costs stemming from infrastructure wreckage, reduced real estate valuation, insurance claims, and adverse health outcomes.
(c) In chapter 6, Laws of 2012 2nd sp. sess., (Engrossed Senate Bill No. 6635), the legislature extended a tax preference to defined "community banks," enabling them to receive a business and occupation tax deduction for the interest they received on certain loans. "Community banks" were defined in statute, RCW 82.04.29005, as "persons or an affiliate of such persons located in ten or fewer states." The legislature indicated that this tax preference was intended to stimulate lending activity in Washington's residential housing market through defined "community banks," and to do so without violating the federal interstate commerce clause. Under RCW 82.04.4292, a subsequent 2015 review of the tax preference by the joint legislative audit and review committee recommended modifying this tax preference, "if the Legislature determines the preference is [not] focused on the pool of lenders the Legislature intended."
(d) The 2024 department of revenue report "Impact of Revenue Alternatives" demonstrated that 65 percent of the beneficiary savings resulting from this tax preference ($91.6 million of a total $141 million in taxpayer savings in 2023) went to placeless financial institutions, not the "community" lenders the legislature intended to support with its 2012 tax preference. These and other large financial institutions benefiting from the tax preference are more likely to conduct a greater share of their business transactions via data centers that consume immense amounts of water on vast plots of deforested land, exacerbating climatic warming trends which increase the frequency of forest fires.
(e) The legislature finds that the current statutory definition of a "community bank" may in any case violate the interstate commerce clause: An arbitrary definition of "ten or fewer states" would appear to discriminate against certain financial institutions on the basis of how much business they conduct in and across American states.
(f) To harmonize the impact of the first mortgage interest deduction tax preference with the legislature's intent in creating this preference, the joint legislative audit and review committee's 2015 revisitation of RCW 82.04.4292 and 82.04.29005 recommended narrowing the intended target of the tax preference therein, perhaps by adjusting the statute definition of a "community bank," or by making the preference a function of certain kinds of data about mortgages. The legislature finds that thusly subjecting certain financial institutions to the Washington state business and occupation tax would create revenues, some to the state workforce education investment account, and that workforce development investments for forest fire mitigation activities were core to the creation of the wildfire response, forest restoration[,] and community resilience account under RCW 76.04.511(7)." [ 2026 c 131 s 1.]
Short title—2026 c 131: "This act may be known and cited as the wildfire alleviation support act." [ 2026 c 131 s 2.]
Effective date—2026 c 131: "This act takes effect July 1, 2026." [ 2026 c 131 s 5.]
Existing rights, liabilities, or obligations—2012 2nd sp.s. c 6: "This act does not affect any existing right acquired or liability or obligation incurred under the sections amended or repealed or under any rule or order adopted under those sections, nor does it affect any proceeding instituted under those sections." [ 2012 2nd sp.s. c 6 s 701.]
Effective dates—Contingent effective date—2012 2nd sp.s. c 6: "(1) Parts I, II, and V through VII of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2012.
(2) Section 302 of this act does not take effect if the contingency in subsection (3) of this section occurs.
(3) Section 303 of this act takes effect if Substitute House Bill No. 2530 or any other legislation repealing RCW 82.32.534 is enacted during the 2012 1st special session and signed into law.
(4) Parts III and IV of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately [May 2, 2012]." [ 2012 2nd sp.s. c 6 s 703.]

catchline: Tax on loan interest—High volume mortgage lender.