Higher education funding

AN ACT Relating to increasing state funding to expand access to 1
higher education; amending RCW 82.04.290; and providing an effective 2
date. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 82.04.290 and 2020 c 2 s 3 are each amended to read 5
as follows: 6
(1) Upon every person engaging within this state in the business 7
of providing qualifying international investment management services, 8
as to such persons, the amount of tax with respect to such business 9
is equal to the gross income or gross proceeds of sales of the 10
business multiplied by a rate of 0.275 percent. 11
(2)(a) Upon every person engaging within this state in any 12
business activity other than or in addition to an activity taxed 13
explicitly under another section in this chapter or subsection (1) or 14
(3) of this section; as to such persons the amount of tax on account 15
of such activities is equal to the gross income of the business 16
multiplied by the rate of: 17
(i) ((1.75)) 1.8 percent; or 18
(ii) 1.5 percent for: 19
(A) Any person subject to the surcharge imposed under RCW 20
82.04.299; 21
S-2332.1
SENATE BILL 5791
State of Washington 69th Legislature 2025 Regular Session
By Senator Hansen
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(B) Any person whose gross income of the business subject to the 1
tax imposed under this subsection (2), for the immediately preceding 2
calendar year, was less than one million dollars, unless (I) the 3
person is affiliated with one or more other persons, and (II) the 4
aggregate gross income of the business subject to the tax imposed 5
under this subsection (2) for all affiliated persons was greater than 6
or equal to one million dollars for the immediately preceding 7
calendar year; and 8
(C) Hospitals as defined in RCW 70.41.020, including any hospital 9
that comes within the scope of chapter 71.12 RCW if the hospital is 10
also licensed under chapter 70.41 RCW. This subsection (2)(a)(ii)(C) 11
must not be construed as modifying RCW 82.04.260(10).12
(b) This subsection (2) includes, among others, and without 13
limiting the scope hereof (whether or not title to materials used in 14
the performance of such business passes to another by accession, 15
confusion or other than by outright sale), persons engaged in the 16
business of rendering any type of service which does not constitute a 17
"sale at retail" or a "sale at wholesale." The value of advertising, 18
demonstration, and promotional supplies and materials furnished to an 19
agent by his or her principal or supplier to be used for 20
informational, educational, and promotional purposes is not 21
considered a part of the agent's remuneration or commission and is 22
not subject to taxation under this section. 23
(c) ((14.3)) 16.67 percent of the revenues collected under (a)(i) 24
of this subsection (2) must be deposited into the workforce education 25
investment account created in RCW 43.79.195. 26
(d)(i) To aid in the effective administration of this subsection 27
(2), the department may require a person claiming to be subject to 28
the 1.5 percent tax rate under (a)(ii)(B) of this subsection (2) to 29
identify all of the person's affiliates, including their department 30
tax registration number or unified business identifier number, as may 31
be applicable, or to certify that the person is not affiliated with 32
any other person. Requests under this subsection (2)(d)(i) must be in 33
writing and may be made electronically. 34
(ii) If the department establishes, by clear, cogent, and 35
convincing evidence, that a person, with intent to evade the 36
additional taxes due under the ((1.75)) 1.8 percent tax rate in 37
(a)(i) of this subsection (2), failed to provide the department with 38
complete and accurate information in response to a written request 39
under (d)(i) of this subsection (2) within thirty days of such 40
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request, the person is ineligible for the 1.5 percent tax rate in 1
(a)(ii) of this subsection (2) for the entire current calendar year 2
and the following four calendar years. However, the department must 3
waive the provisions of this subsection (2)(d)(ii) for any tax 4
reporting period that the person is otherwise eligible for the 1.5 5
percent tax rate in (a)(ii) of this subsection (2) if (A) the 6
department has not previously determined that the person failed to 7
fully comply with (d)(i) of this subsection (2), and (B) within 8
thirty days of the notice of additional tax due as a result of the 9
person's failure to fully comply with (d)(i) of this subsection (2) 10
the department determines that the person has come into full 11
compliance with (d)(i) of this subsection (2). This subsection (2)(d) 12
applies only with respect to persons claiming entitlement to the 1.5 13
percent tax rate solely by reason of (a)(ii)(B) of this subsection 14
(2). 15
(e) For the purposes of (a)(ii)(B) of this subsection (2), if a 16
taxpayer is subject to the reconciliation provisions of RCW 17
82.04.462(4), and calculates gross income of the business subject to 18
the tax imposed under this subsection (2) for the immediately 19
preceding calendar year, or aggregate gross income of the business 20
subject to the tax imposed under this subsection (2) for the 21
immediately preceding calendar year for all affiliated persons, based 22
on incomplete information, the taxpayer must correct the reporting 23
for the current calendar year when complete information for the 24
immediately preceding calendar year is available. 25
(f) For purposes of this subsection (2), the definitions in this 26
subsection (2)(f) apply: 27
(i) "Affiliate" means a person that directly or indirectly, 28
through one or more intermediaries, controls, is controlled by, or is 29
under common control with another person; and 30
(ii) "Control" means the possession, directly or indirectly, of 31
more than eighty percent of the power to direct or cause the 32
direction of the management and policies of a person, whether through 33
the ownership of voting shares, by contract, or otherwise.34
(3)(a) Until July 1, 2040, upon every person engaging within this 35
state in the business of performing aerospace product development for 36
others, as to such persons, the amount of tax with respect to such 37
business is equal to the gross income of the business multiplied by a 38
rate of 0.9 percent. 39
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(b) A person reporting under the tax rate provided in this 1
subsection (3) must file a complete annual report with the department 2
under RCW 82.32.534. 3
(c) "Aerospace product development" has the meaning as provided 4
in RCW 82.04.4461. 5
NEW SECTION. Sec. 2. Section 1 of this act takes effect October 6
1, 2025.7
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