Bill > HB2023

This bill creates a work group to study the taxation of investment income under RCW 82.04.4281, in response to a recent Washington Supreme Court decision (Antio, LLC v. Department of Revenue) that introduced uncertainty about how investment income is taxed for business and occupation (B&O) tax purposes. The bill temporarily prevents the Department of Revenue from assessing B&O tax on investment income for non-banking, lending, or securities businesses if the income is deemed more than incidentally related to their primary business. The work group will consist of nine members representing various stakeholders, including the Department of Revenue, Office of Financial Management, an international investment management company, a nonprofit arts organization, a union pension fund, business associations, and a certified public accountant association. The work group is required to meet at least monthly and provide recommendations to the legislature by November 30, 2025, aimed at clarifying the existing statute's investment income deduction. The bill includes provisions that the work group may meet virtually, and it sets an expiration date of November 30, 2026, with an emergency clause making it effective immediately to address potential immediate tax uncertainties.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2023&Year=2025&Initiative=false