House Bill 2335 repeals business and occupation tax increases that were enacted in 2025 by removing specified 2025 c 420 sections (sections 101 through 113, sections 201 and 202, and section 301) and by repealing RCW 82.04.288, the surcharge on Washington taxable income over $250,000,000 (which had been effective January 1, 2026, through December 31, 2029). The bill therefore modifies existing law by eliminating those 2025 tax increases and surcharges; it does not create new crimes or change criminal penalties. The bill identifies affected groups as businesses subject to the 2025 business and occupation tax increases, “high grossing businesses and financial institutions” (in the part addressing RCW 82.04.288), and entities subject to an “advanced computing surcharge.” It also includes procedural provisions: Sec. 401 states that RCW 82.32.805 and 82.32.808 do not apply to this act, Sec. 402 is a severability clause, and Sec. 403 declares an emergency and sets the act’s effective date as April 1, 2026. The bill was prefiled January 8, 2026, and read for the first time January 12, 2026. The document excerpts do not include the full text of the 2025 c 420 provisions being repealed, nor do they define terms such as “advanced computing surcharge” or “high grossing businesses.” The reasons for excluding RCW 82.32.805 and 82.32.808 from application to this act are not explained in the provided text.

If enacted, this bill would roll back the business and occupation tax increases put in place by the 2025 law and would remove the large surcharge on Washington taxable income over $250 million and the so-called advanced computing surcharge, so companies that would have faced higher B&O taxes, high-grossing businesses and financial firms, and entities targeted by the advanced computing charge would avoid those added tax costs and related compliance duties as of the act’s effective date, April 1, 2026. Because the surcharge on income over $250 million was described as becoming effective January 1, 2026, there is uncertainty about whether any tax liabilities or collections between January and April 1, 2026 would be affected. For the state, the direct effect is a reduction in revenues compared with what the 2025 law would have raised, which could affect budgets or programs that had planned on that income, but the extracted text does not include dollar amounts or implementation details so the exact fiscal impact and administrative consequences are unclear. The bill also says two existing RCW provisions do not apply to it, but the facts provided do not explain what that change means in practice.