On May 20, 2025, WAS LEG reported governor signed bill, assigned Chapter 420.
Document dated May 20, 2025, was added on Jun. 10, 2025, due to editorial backfill.
On Apr. 26, WAS LEG passed bill on revisions to taxes and deductions.
WAS LEG passed HB 2081 (SB5815) on business, investment taxes, certain deductions
Amends multiple provisions, adds new section under WAS LEG 82.04 (business taxes).
Adds new section under WAS LEG 82.32 (general excise tax administrative provisions).
Document dated Apr. 26, 2025, was received on May 2, 2025, due to a fixed feed.
Bill Provisions
Increases taxes on various businesses, including those providing qualifying international investment services, insurance producers or title insurance agents.
Also surplus lines brokers, nonprofit corporations and nonprofit associations, hospitals.
Surcharge on financial institutions deemed high grossing on income over $250mn.
Additional tax levied on specified financial institutions, financial institutions that are a member of a group that reported net income for the previous year of at least $1bn.
Clarifies incidental to the main purpose of the business for purposes of investment deduction; income received from personal investments is not business income.
Nondeductible investment income is subject to the service and other activities business and occupation tax classification and should be apportioned in accordance with law.
Allows deductions for investments not incidental to the main purpose of the business for certain entities, including for collective investment vehicles, retirement accounts.
Prohibits deductions for income received as compensation for services rendered to either the collective investment vehicle or the collective investment vehicle's investors.
Defines collective investment vehicle, family investment vehicle, retirement account.
Legislative History
On Apr. 16, 2025, bill introduced in House; on Apr. 22, 2025, bill passed in House.
On Apr. 22, 2025, bill introduced in Senate; on Apr. 26, 2025, bill passed in Senate.
Effectiveness
Effective Jul. 27, 2025, except for sections 101 through 108 and 110 through 112, which take effect Jan. 1, 2027; sections 109 and 202, which take effect Oct. 1, 2025.
S. 113 effective Jan. 1, 2034; S. 114, 201, 301, 401, and 402, effective Jan. 1, 2026.
May 2025 WAS LEG Governor Approval
On May 20, 2025, WAS LEG reported governor signed bill, assigned Chapter 420.
Document dated May 20, 2025, was added on Jun. 10, 2025, due to editorial backfill.