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WA SB5815

Bill

Status

Introduced

4/16/2025

Primary Sponsor

Rebecca Saldana

Click for details

Origin

Senate

2025-2026 Regular Session

AI Summary

  • Increases various business and occupation (B&O) tax rates effective January 1, 2027, including raising the general retail rate from 0.471% to 0.5%, wholesale/manufacturing rates from 0.484% to 0.5%, and the service and other activities rate from 1.75% to 2.1%

  • Creates a temporary 0.5% surcharge on companies with Washington taxable income exceeding $250,000,000 annually, effective January 1, 2026 through December 31, 2030, with exemptions for manufacturing income and certain retail sales

  • Increases the surcharge on specified financial institutions (banks with $1 billion+ in net income) from 1.2% to 1.5% effective October 1, 2025

  • Raises the advanced computing surcharge rate from 1.22% to 5% effective January 1, 2026 for select technology companies with $25 billion+ in worldwide revenue, while maintaining the $9 million annual cap per affiliated group

  • Clarifies the B&O tax deduction for investment income, specifying it only applies when investment income is less than 5% of total worldwide gross income, and explicitly excludes banking, lending, and security businesses from the deduction

Legislative Description

Modifying business and occupation tax surcharges, rates, and the advanced computing surcharge cap, clarifying the business and occupation tax deduction for certain investments, and creating a temporary business and occupation tax surcharge on large companies.

Last Action

By resolution, reintroduced and retained in present status.

1/12/2026

Committee Referrals

Ways & Means4/16/2025

Full Bill Text

No bill text available