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WA SB5777
Bill
Status
2/25/2025
Primary Sponsor
June Robinson
Click for details
AI Summary
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Payment card processors may deduct interchange fees, network fees, and fees retained by other processors when calculating their business and occupation (B&O) tax liability
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Creates a new 3.0% B&O tax rate for payment card processing activities, higher than the standard 1.5-1.75% service rate under RCW 82.04.290
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Excludes from the 3.0% rate processors who also operate the payment network and make payments to affiliated financial institutions, or who are also the card issuer—these remain taxed at standard rates without the deduction
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Specified financial institutions (those in consolidated groups with $1 billion+ annual net income) must pay an additional 1.2% tax on income from payment card processing activities
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Effective date is January 1, 2026
Legislative Description
Creating a business and occupation tax deduction and increasing the rate for persons conducting payment card processing activities.
Last Action
By resolution, reintroduced and retained in present status.
1/12/2026