Creating a business and occupation tax deduction and increasing the rate for persons conducting payment card processing activities.

 H-2212.1

SUBSTITUTE HOUSE BILL 2020

State of Washington

69th Legislature

2025 Regular Session

By House Appropriations (originally sponsored by Representatives Berg, Orcutt, Fitzgibbon, Gregerson, Parshley, and Ormsby)

READ FIRST TIME 04/08/25.

AN ACT Relating to creating a business and occupation tax deduction and increasing the rate for persons conducting payment card processing activities; amending RCW 82.04.290 and 82.04.29004 ; reenacting and amending RCW 82.04.299 ; adding a new section to chapter 82.04 RCW; creating new sections; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The unique nature of payment system arrangements distinguishes payment card processors from other taxpayers. Due to the unique nature of processors' activities related to interchange fees and network fees, the legislature intends to address the business and occupation taxation of processors' activities on a prospective basis through the deduction and rate authorized in this act. The legislature does not intend for inferences as to the taxability of prior periods to be drawn from the passage of this act.

NEW SECTION. Sec. 2. A new section is added to chapter 82.04 RCW to read as follows: