Bill > HB1506

This bill amends Washington state law to remove the current business and occupation (B&O) tax exemption for state-chartered credit unions that merge with a commercial bank, effective October 1, 2025. Specifically, the legislation creates a new provision that requires a state-chartered credit union which merges with or acquires a bank regulated by the state's department of financial institutions to become subject to a B&O tax of 1.2% on its gross income. Previously, credit unions were entirely exempt from this tax. The bill appears designed to generate additional tax revenue by closing a tax exemption when credit unions transition to a different business structure through merger or acquisition with a bank. By imposing this tax, the legislature is treating credit unions that merge with banks differently from those that remain standalone institutions, potentially creating a financial disincentive for such mergers or generating new state revenue from these business transitions.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1506&Year=2025&Initiative=false