Washington HB 1506: Imposing a business and occupation tax on state-chartered credit unions that merge with a commercial bank.

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
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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