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HB1506 • 2026

Credit union-bank merger/tax

Imposing a business and occupation tax on state-chartered credit unions that merge with a commercial bank.

Labor Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Representative Walen, Representative Ormsby, Representative Scott
Last action
2026-01-12
Official status
H Finance
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Credit union-bank merger/tax

Credit union-bank merger/tax

What This Bill Does

  • Credit union-bank merger/tax

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-12 House

    By resolution, reintroduced and retained in present status.

Official Summary Text

Credit union-bank merger/tax

Current Bill Text

Read the full stored bill text 
AN ACT Relating to imposing a business and occupation tax on 1
state-chartered credit unions that merge with a commercial bank; and 2
amending RCW 82.04.405. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 82.04.405 and 1998 c 311 s 4 are each amended to 5
read as follows: 6
((This)) (1) Except as provided in subsection (2) of this 7
section, this chapter shall not apply to the gross income of credit 8
unions organized under the laws of this state, any other state, or 9
the United States. 10
(2) Beginning October 1, 2025, if a credit union organized under 11
the laws of this state merges or acquires a bank that is regulated by 12
the department of financial institutions, the credit union no longer 13
qualifies for the exemption from business and occupation tax in 14
subsection (1) of this section and is subject to tax equal to the 15
gross income of the credit union, multiplied by 1.2 percent.16
--- END ---
H-0642.1
HOUSE BILL 1506
State of Washington 69th Legislature 2025 Regular Session
By Representatives Walen, Ormsby, and Scott
Read first time 01/22/25. Referred to Committee on Finance.
p. 1 HB 1506