WAS LEG Business, Investment Taxes

Updated on: Jun 10, 2025

Latest Event


  • 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.

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.
Regulators
WAS LEG
Entity Types
B/D; Bank; Corp; CU; Depo; IA; Ins; Inv Co; SLHC; Thrift
Reference
Ch. 420, 5/20/2025; Bill HB2081, SB5815; 4/26/2025; Citation: *WAS LEG* 82.04, 82.32;
Functions
Compliance; Financial; Legal; Reporting; Tax
Countries
United States of America
Category
State
N/A
Products
Banking; Corporate; Fund Mgt; Insurance; Insurance-Casualty; Insurance-Health; Insurance-Life; Insurance-Property; Investment Bank; Mutual Funds; Retirement Plan; Title Insurance; Wealth Mgt
Rule Type
Final
Regions
Am
Rule Date
Apr 26, 2025
Effective Date
Jul 27, 2025
Rule ID
252874
Linked to
N/A
Reg. Last Update
May 20, 2025
Report Section
US Consumer