Bill > SB5794

This bill is a comprehensive tax law update designed to improve the administration of tax preferences in Washington state. The bill adopts recommendations from the tax preference performance review process, eliminates obsolete tax preferences, clarifies legislative intent, and makes several specific tax-related changes. Key provisions include removing certain tax exemptions, modifying tax rates for specific industries, and addressing technical tax code issues. For example, the bill removes several tax credits and deductions that are no longer relevant, such as those for public safety standards and loan interest. It also introduces new tax provisions, such as imposing a 1.2 percent tax on credit unions that merge with banks and eliminating the business and occupation tax exemption for self-service storage facility rentals. The bill reflects the legislature's ongoing efforts to create a more transparent, fair, and efficient tax system by regularly reviewing and updating tax preferences based on their effectiveness and current economic conditions. Most provisions of the bill will take effect on January 1, 2026, with some specific sections having different effective dates.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5794&Year=2025&Initiative=false