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WA SB5766
Bill
Status
2/18/2025
Primary Sponsor
Marko Liias
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AI Summary
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Amends RCW 82.04.4281 to add a new B&O tax deduction for investment income earned by passive investment vehicles when managed by a person subject to tax under RCW 82.04.290(1), such as investment advisors
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Adds a statutory definition of "investment" to include securities, fixed income instruments (bonds, notes, commercial paper, bank deposits, mortgage loans), derivative instruments (options, futures, swaps), and commodities
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Responds to the Washington Supreme Court decision in Antio, LLC v. Department of Revenue, which created uncertainty about the deductibility of investment income for B&O tax purposes
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Applies retroactively but explicitly does not create any right to refunds for taxes already paid on investment income before the effective date
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Preserves existing deductions for investment income, dividends from subsidiaries, and inter-company loan interest (when total investment and loan income is less than 5% of gross receipts)
Legislative Description
Clarifying the business and occupation tax treatment of the investment income of passive investment vehicles managed by a person subject to business and occupation tax under RCW 82.04.290(1).
Last Action
By resolution, reintroduced and retained in present status.
1/12/2026