This bill creates a new 1.0% surcharge on Washington taxable income for taxpayers with Washington taxable income greater than $250,000,000 in a calendar year, effective January 1, 2026, by adding a new section to chapter 82.04 RCW. The surcharge expressly exempts income already subject to the tax in RCW 82.04.29004, income taxed at certain manufacturing tax rates and related wholesale or retail sales of manufactured products, taxable income for which a credit is allowed under RCW 82.04.440, and persons primarily engaged as farmers or eligible apiarists (as defined in RCW 82.04.213). The bill also amends RCW 82.04.29004 to impose an additional tax on specified financial institutions: 1.2% of gross income taxable under RCW 82.04.290(2) for the period January 1, 2020 through June 30, 2025, and 1.9% beginning July 1, 2025. Taxes collected under the amended section are required to be deposited into the state general fund. The bill defines terms used for this tax (including “affiliated,” “consolidated financial institution group,” “consolidated financial statement,” “financial institution,” and “specified financial institution” based on consolidated group net income or prior years’ taxation) and authorizes the Department of Revenue to require disclosure to determine membership in a consolidated financial institution group, with a penalty available for failure to comply and a duty to notify the legislative fiscal committees if consolidated financial statements are no longer required. Procedurally, the act states that RCW 82.32.805 and 82.32.808 do not apply to it, declares the act (except section 2) necessary for immediate preservation of public peace, health, or safety and takes effect July 1, 2025, and specifies that section 2 (the surcharge) takes effect January 1, 2026. The extracted material does not include the full texts of the cross-referenced RCW sections, the exact new section number added to chapter 82.04, or any implementing rules or administrative procedures the Department of Revenue may use.

Large corporations with more than $250 million of Washington taxable income in a year would likely see higher tax bills beginning January 1, 2026, because the bill adds a 1% surcharge on taxable income over that threshold while carving out specified manufacturing income, certain credit-eligible income, income already taxed under the financial-institution provision, and farmers and eligible apiarists. Separately, very large financial institutions and consolidated financial groups face an additional tax that was 1.2% for 2020–June 30, 2025 and rises to 1.9% starting July 1, 2025, with those collections directed to the state general fund; affected firms should expect higher ongoing tax costs and increased disclosure and compliance obligations because the Department of Revenue can require information and penalize noncompliance. Who is most affected are very large non-manufacturing businesses and large banks or financial holding groups; they will likely pay more in taxes and need to provide more documentation, while farmers and eligible beekeepers are explicitly left out. Important details about how to calculate taxable income, how the listed exemptions interact, and the exact rules for identifying consolidated groups are referenced but not included here, so the precise dollar impact and some administrative steps remain unclear until the cited RCWs and any Department of Revenue guidance are consulted.