6346-S.E AMH BER H3819.3

ESSB 6346 - H AMD TO H AMD (H-3793.3/26) 2539

By Representative Berg

On page 3, line 21, after "(12)" insert "The legislature finds that local government revenue sources are limited and unable to keep up with rising costs. The legislature further finds that many of the tax reductions that help Washingtonians have an impact on local government revenues. To offset some of those impacts, the legislature intends to create a city and county fiscal health account for future transfers from the general fund to mitigate a portion of the revenue loss to local government. Such transfers will be unrestricted and available for general use.

(13)"

Renumber the remaining subsection consecutively and correct any internal references accordingly.

On page 3, line 38, after "income";" strike "and"

On page 4, line 2, after "state" insert "; and

(e) Increase state funding for K-12 education in order to improve outcomes for Washington's students by strengthening high quality instruction and expanding student supports"

On page 4, beginning on line 3, strike all of subsection (13)

Correct any internal references accordingly.

On page 5, line 15, after "302 through" strike "309" and insert "308"

On page 5, line 18, after "sections" strike "310" and insert "309"

On page 7, line 8, after "Rico," insert "a federally recognized tribe,"

On page 8, line 19, after "302 through" strike "309" and insert "308"

Beginning on page 10, line 26, strike all of section 308 and insert the following:

"NEW SECTION. Sec. 308. TRIBAL INCOME.(1) The following is exempt from the tax imposed by this chapter:

(a) Income derived from the exercise of rights by any member of a federally recognized tribe secured by treaty, executive order, or act of congress;

(b) Income received by any member of a federally recognized tribe, when the individual worked or received income within their own tribe's Indian country;

(c) Income received by any member of a federally recognized tribe that is derived directly from lands or funds held in trust by the secretary of the United States department of interior allotted and restricted Indian lands;

(d) Income derived from a federally recognized tribe, including its subdivisions and entities, when such income is received by a member of a federally recognized tribe or by a beneficiary of an Indian health program pursuant to 42 C.F.R. Sec. 136.12 (2026); and

(e) Any income, payments, benefits, or services, the taxation of which is otherwise exempted or preempted by federal or state law including, but not limited to, sections 139D and 139E of the internal revenue code.

(2) This chapter is not intended to apply to, or impose obligations on, federally recognized tribes or their subdivisions or entities with tribal government headquarters located in the state of Washington."

On page 42, line 29, after "included;" strike "and"

On page 42, line 30, after "(d)" insert "The administration and implementation of the opt-in safe harbor provision;

(e) The implementation and administration of extending sales tax to services; and

(f)"

On page 92, line 10, after "basis" insert ". "Temporary staffing services" do not include staffing services utilized by hospital-based clinical providers to supplement their fulfillment of hospital contracts for professional services and that are utilized for limited periods of time to supplement hospital staffing"

On page 93, beginning on line 3, after "presentations"" strike all material through "instruction" on line 13 and insert "do not include:

(A) Before and after school care provided in-person and on-site by elementary schools;

(B) Presentations given by a nonprofit organization exempt from federal income tax under Title 26 U.S.C. Sec. 501(c) of the federal internal revenue code;

(D) One-on-one instructional activities including tutoring and consulting; and

(E) Music lessons regardless of the number of participants"

EFFECT: Makes changes to the intent section. Makes technical corrections. Clarifies tribal income exempt from the income tax. Provides that a tax credit for income taxes due to another jurisdiction includes tax payments made to a federally recognized tribe. Adds the implementation and administration of opt-in safe harbor provision and extending sales tax to services to the work of the Advisory Group.

Excludes certain temporary staffing services utilized by hospital-based clinical providers from retail sales and use tax beginning July 1, 2026.

Clarifies that an exception from the sales and use services tax on live presentations is for music lessons.