This bill adds a new section to chapter 82.32 RCW creating a formal voluntary disclosure program administered by the Washington State Department of Revenue. Under the program the department may enter into agreements with qualifying "voluntary registrants" to waive any portion of penalties otherwise imposed under RCW 82.32.090(1), (2), or (4) for tax liability incurred while the person was unregistered. For persons who submit a voluntary disclosure application after July 1, 2025, and before September 30, 2025, the department must waive all penalties and interest otherwise imposed under those subsections for liability incurred while unregistered. The department may rescind penalty and interest relief in whole or part if it determines materially different facts than those represented. The waiver does not relieve liability for state or local sales taxes that were collected from buyers but not remitted, and the law does not authorize refunds of state or local sales and use taxes properly paid before July 1, 2025. The act is declared an emergency and takes effect July 1, 2025. The bill defines "voluntary registrant" by five requirements: the person engaged in taxable activity requiring registration under RCW 82.32.030 while unregistered; submitted an application for a registration certificate before any department contact; has not engaged in fraud, evasion, or misrepresentation for taxes under the chapter; has disclosed all relevant taxable activity to the department; and attests under penalty of perjury in a form and manner required by the department. For the "prior to any department contact" requirement, the department is deemed to have contacted the person if, during the current or preceding four calendar years, the contact was for tax enforcement, clearly directed to that person, and requested the person to take action. This is a procedural statutory change that creates a new voluntary disclosure mechanism and alters how penalties and interest may be waived; it is not presented as creating a new crime or changing criminal penalties. It primarily affects the Department of Revenue, persons who should register under RCW 82.32.030, and state and local tax authorities insofar as collection, remittance, and refund limits are implicated. The extracted text does not include the existing language of RCW 82.32.030 or RCW 82.32.090 (so specific registration duties and penalty amounts are not provided), does not define what constitutes the "current" year in the contact rule, and does not include the department's required forms or procedural rules for attestation, application review, or agreement implementation.

If enacted, people and businesses that have been doing taxable activity without registering can avoid penalties and interest for the period they were unregistered by applying to the Department of Revenue and getting a waiver, provided they register before the department has contacted them about enforcement and meet disclosure and honesty requirements. There is a special full-waiver window for applications submitted after July 1, 2025 and before September 30, 2025; applicants must attest under penalty of perjury, the department can rescind relief if facts later prove different, and anyone who collected sales tax but did not remit it still owes that tax and cannot get refunds for taxes properly paid before July 1, 2025. This will most directly affect unregistered sellers and small businesses by lowering the likely cost and legal risk of coming forward voluntarily, while shifting a new screening and agreement workload and discretion to the Department of Revenue; local and state tax authorities will continue to collect tax owed but may receive less penalty revenue. Key implementation details—such as the specific registration rules referenced, the amounts of penalties and interest involved, the exact administrative forms and procedures, and how the “current” year is defined for prior contact—are not included in the extracted facts.