The bill amends many business and occupation (B&O) tax provisions in chapter 82.04 RCW, changing rates, adding or reenacting carve-outs, adding reporting and recordkeeping requirements, and creating new definitions and contingent provisions. Among the rate changes in the extracted text: extractors and general manufacturers move from 0.484% to 0.5324%; the general retail rate moves from 0.471% to 0.5181%; selected manufacturing carve-outs (certain agricultural products, seafood, dairy, fruits and vegetables, wood biomass fuel, dried peas, slaughtered meat sold wholesale) are assigned reduced rates (commonly 0.1518%); semiconductor manufacturing and processing-for-hire preferential rates change (to 0.3025% and 0.3025% for some activities) with those sections expiring January 1, 2034 and being contingent in one instance on siting of a qualifying semiconductor fabrication facility; timber and wood-product rates are set through July 1, 2045 with transitional rates; newspaper printing, canned salmon inspection/storage, alternative jet fuel, solar component manufacturing, royalties, assisted living domiciliary care, child care, contests of chance, low-level radioactive waste cleanup, and other industry-specific rates are created or modified as shown in the extracted material. The bill also imposes procedural requirements: many taxpayers must file a complete annual tax performance report under RCW 82.32.534, persons claiming preferential rates must preserve records per RCW 82.32.070 to show out-of-state transport when required, persons subject to RCW 82.04.257 must comply with mandatory electronic filing/payment under RCW 82.32.080, and specified agencies (Department of Commerce, Department of Labor and Industries, and an unnamed "department") must provide notices that trigger rate changes or reductions. A notable procedural contingency for aerospace tax relief requires verification by the department of commerce of a U.S.–EU agreement resolving certain WTO disputes, a written apprenticeship-utilization notice from Labor and Industries, and then departmental notice to the legislature; if conditions are met a reduced aerospace rate of 0.3927% may take effect on the first day of a calendar quarter at least 60 days after receipt of the last required notice. For semiconductor tax preferences, claimants must reimburse the department for 50% of the tax preference if employment falls below 90% of the claimant’s three-year employment average. The bill adds and clarifies many definitions (for example, “semiconductor materials,” “wood biomass fuel,” “timber,” “biocomposite surface products,” and terms relating to grocery distribution cooperatives), sets multiple effective dates and expirations (including staggered effective dates: most sections effective January 1, 2027; one section effective October 1, 2025; one effective January 1, 2034; and an expiration of one section on January 1, 2034), and states that RCW 82.32.805 and 82.32.808 do not apply to the act. The extracted text is incomplete in places: the identity of the repeatedly referenced "the department" is not specified in the provided facts; some definitions and several statutory text portions are cut off or omitted; and multiple RCW headings are listed without their amended text in the extracts.

If enacted, the bill raises the business-and-occupation tax rates for many broad categories (manufacturing, extracting, retail, digital sales, real estate brokerage, and others), while carving out lower preferential rates for specific activities (certain agricultural and seafood processing, wood biomass fuel, some dairy/fruits/vegetables processing beginning July 1, 2035, timber activities on a scheduled timeline, and limited solar and alternative jet fuel incentives tied to production triggers). That means many businesses will see higher tax bills, some processors and producers will pay much less for defined activities during specified windows, and several industries (semiconductors, aerospace, tooling, newspapers, low-level waste disposers, travel agents, insurance agents, hospitals, nonprofits doing R&D, stevedores, freight/agent firms) face distinct rate changes, new annual reporting obligations, recordkeeping requirements to prove out-of-state sales, and in some cases clawback rules (for example, semiconductor claimants must reimburse 50% of the tax preference if employment falls below 90% of a three‑year average). The bill also changes how portions of tax revenue are directed to the workforce education investment account (different percentages tied to filing period dates) and creates new verification and notice roles for state agencies (department of commerce, department of labor and industries, department of ecology, and the unnamed “department” that receives reports and issues notices), so state administrative and compliance duties will increase. Important details are missing from the extracted text—several sections are cut off and the specific “department” referenced is not identified—so some implementation mechanics, exact effective dates for certain provisions, and enforcement procedures remain unclear.