H-0642.1

HOUSE BILL 1506

State of Washington

69th Legislature

2025 Regular Session

ByRepresentatives Walen, Ormsby, and Scott

Read first time 01/22/25.Referred to Committee on Finance.

AN ACT Relating to imposing a business and occupation tax on state-chartered credit unions that merge with a commercial bank; and amending RCW 82.04.405.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 82.04.405 and 1998 c 311 s 4 are each amended to read as follows:

((This))(1) Except as provided in subsection (2) of this section, this chapter shall not apply to the gross income of credit unions organized under the laws of this state, any other state, or the United States.

(2) Beginning October 1, 2025, if a credit union organized under the laws of this state merges or acquires a bank that is regulated by the department of financial institutions, the credit union no longer qualifies for the exemption from business and occupation tax in subsection (1) of this section and is subject to tax equal to the gross income of the credit union, multiplied by 1.2 percent.

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