H-1648.1
HOUSE BILL 2023
State of Washington
69th Legislature
2025 Regular Session
By Representatives Berg, Orcutt, Rule, and Parshley
Read first time 02/25/25. Referred to Committee on Finance.
AN ACT Relating to establishing a work group to study the taxation of investment income under RCW 82.04.4281 ; creating new sections; providing expiration dates; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that the application of the business and occupation tax deduction provided in RCW 82.04.4281 (1)(a) has become the subject of uncertainty as a result of the recent decision of the state supreme court in Antio, LLC v. Department of Revenue . This decision could lead to a restrictive, narrow interpretation of the deductibility of investment income for business and occupation tax purposes. Numerous Washingtonians may be impacted by the uncertainty and the legislature finds that these impacts require careful consideration. Therefore, it is the intent of the legislature to delay change in the manner or extent of taxation of the investment income deduction until definitions or standards can be developed and enacted by the legislature.
NEW SECTION. Sec. 2. (1) The department of revenue may not assess business and occupation tax on the investment income of persons that are not banking, lending, or security businesses as those terms are defined in RCW 82.04.4281 on the grounds that the person's investment income is not eligible for the deduction provided by RCW 82.42.4281 (1)(a) because such amounts or the person's investment activities are more than incidental.