The bill amends existing law (RCW 82.08.020) to change state retail sales tax provisions. It sets the state retail sales tax rate at six percent of the selling price on retail sales in Washington of specified items and services (including tangible personal property unless excluded by RCW 82.04.050, certain digital goods/digital codes/digital automated services and other services if they fall within the RCW 82.04.050 definition of retail sale, and extended warranties). It also levies an additional 5.9 percent tax on each retail car rental and an additional 0.3 percent tax on each retail sale of a motor vehicle (other than retail car rentals); revenues from both of those additional taxes are deposited in the multimodal transportation account (RCW 47.66.070). Beginning December 8, 2005, 0.16 percent of taxes collected under the general retail-sales subsection must be dedicated to comprehensive performance audits and deposited into the performance audits of government account (RCW 43.09.475). The act takes effect January 1, 2027. Legally, this is a statutory amendment that adjusts tax rates, creates or continues specific targeted taxes and revenue earmarks, and ties certain definitions by reference. The statutory “motor vehicle” definition is taken from RCW 46.04.320 but expressly excludes farm tractors/vehicles (except when used in the production of cannabis), off-road vehicles, nonhighway vehicles, and snowmobiles as listed by cross-reference. The change applies to successive retail sales and the rates also apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020. No changes to criminal penalties or enforcement procedures are set forth in the extracted text. Important context is missing from the provided extracts: the full definition of “retail sale” in RCW 82.04.050 is not included, so which specific transactions are included or excluded cannot be confirmed here. The extracts also do not show whether related changes to use tax statutes or other sections accompany this amendment, nor do they include supporting data for the legislative findings cited.

If enacted, the state retail sales tax rate would be set at six percent on retail sales in Washington effective January 1, 2027, with two separate extra levies: a 5.9 percent surcharge on retail car rentals and a 0.3 percent surcharge on motor vehicle retail sales (excluding specified farm, off‑road, nonhighway vehicles, and snowmobiles), with the rental and vehicle surcharges directed to the multimodal transportation account. Also, 0.16 percent of taxes collected under the general retail-sales subsection is dedicated to funding comprehensive performance audits and deposited into the performance audits of government account; taxes apply to successive retail sales and the rates extend to corresponding taxes under chapter 82.12 RCW. The people most affected are Washington consumers, who will see state sales tax charged at the six percent rate on taxable retail purchases (which may change their out-of-pocket costs, especially for lowand middle-income households mentioned in the bill’s findings), and renters of cars and buyers of motor vehicles, who will face substantial additional taxes earmarked for transportation. Retailers, car rental companies, and vehicle dealers will need to collect and remit the new rates and surcharges, shifting revenue allocation toward multimodal transportation and performance audits. The exact scope of taxable transactions depends on the definition of “retail sale” in RCW 82.04.050, which is not included here, and the document does not show whether related use tax provisions are changed.