Bill > SB5777

This bill addresses business and occupation tax provisions for payment card processors, creating a new tax framework for their activities. The legislation introduces a 3.0 percent tax rate specifically for payment card processing activities, with a unique provision allowing processors to deduct certain fees such as interchange fees, network fees, and portions of fees retained by other processors. The bill provides detailed definitions for key terms like "payment network," "processor," "issuer," and "acquirer," and establishes specific exclusions for certain payment card processing activities, such as those involving transactions where the processor operates the payment network or is affiliated with its operator. The legislation does not intend to draw inferences about the taxability of prior periods and specifically excludes activities like issuing payment cards, authorization and settlement by payment networks, and retail services from the new tax classification. The bill will take effect on January 1, 2026, and aims to create a more nuanced and precise tax treatment for the complex ecosystem of electronic payment transactions.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5777&Year=2025&Initiative=false