S-1569.1
SENATE BILL 5766
State of Washington
69th Legislature
2025 Regular Session
By Senators Liias, Braun, Chapman, and Gildon
AN ACT Relating to clarifying the business and occupation tax treatment of the investment income of passive investment vehicles managed by a person subject to business and occupation tax under RCW 82.04.290 (1); amending RCW 82.04.4281 ; and creating new sections.
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) for investment income has once again become the subject of uncertainty as a result of the decision of the state supreme court in Antio, LLC v. Department of Revenue , which could lead to a restrictive, narrow interpretation of the deductibility of investment income for business and occupation tax purposes. The legislature intends, by adopting this revision to RCW 82.04.4281 , to clarify and preserve the certainty and stability for taxpayers and the state that generally ensued following the adoption of chapter 250, Laws of 2002 in response to the decision of the state supreme court in Simpson Investment Co. v. Department of Revenue . The legislature intends, by adopting this clarifying revision of RCW 82.04.4281 , to avoid uncertainty while continuing to treat similarly situated taxpayers fairly.
Sec. 2. RCW 82.04.4281 and 2007 c 54 s 9 are each amended to read as follows:
(1) In computing tax there may be deducted from the measure of tax: