WeVote
Log In

Bill

Bill

SB 5565

Modifying tax and revenue laws by making technical corrections, clarifying ambiguities, easing compliance burdens for taxpayers, and providing administrative efficiencies.

2023-2024 Regular Session Introduced by Perry Dozier and 4 co-sponsors

Washington updates tax and revenue laws to fix ambiguities and ease taxpayer compliance, modernizing administration and clarifying credits, exemptions, thresholds, and filing rules.

Effective date 7/23/2023.
0
WeVote Research Nonpartisan
Bill Summary · SB 5565

Summary — SB 5565 (2023 substitute; Chapter 374, 2023 Laws)

Modifying tax and revenue laws by making technical corrections, clarifying ambiguities, easing compliance burdens for taxpayers, and providing administrative efficiencies.

Purpose and intent

This bill implements a package of technical, clarifying, and administrative changes to Washington’s tax and related statutes at the Department of Revenue’s (DOR) request. Its aim is to remove outdated references, clarify application of existing exemptions and thresholds, ease taxpayer compliance, and improve administration of several tax and licensing programs.

Key provisions and changes

  • Enhanced Food Fish Tax

    • Requires the addendum for the enhanced food fish tax to be filed at the same time as the combined excise tax return.

  • Main Street Tax Credit

    • Fixes the population threshold determination so it is set at the time a local government is designated as a Main Street Community (prevents later population changes from invalidating credits).

  • Motion Picture Competitiveness Program B&O Tax Credit

    • Removes the separate requirement for claimants to file an annual tax-preference performance report (reduces reporting burden).

  • Revised Uniform Unclaimed Property Act (RUUPA)

    • Replaces outdated references to the repealed Uniform Unclaimed Property Act with RUUPA citations.
    • Establishes abandonment periods (for RUUPA purposes) for excess proceeds from certain sales:
    • Excess proceeds from self‑service storage facility sales: 6 months from date of sale.
    • Income from sale of tenant property by landlords: 1 year from date of sale.
    • Funds from sale of abandoned vessels by private moorage operators: 1 year from date of sale.

  • Working Families Tax Credit (WFTC)

    • Clarifies the rounding process for the minimum $50 WFTC payment.

  • Additional clarifications and cleanups

    • Removes DOR’s continuing annual reporting requirement on city business-license partnerships after its work was completed in 2022.
    • States legislative intent that state sales & use tax exemptions apply equally to local sales & use taxes unless explicitly stated otherwise.
    • Clarifies that repayment of deferred taxes under the Rural County Investment Program is required only if a project stops meeting deferral requirements; replaces the term “tolled” with “suspended” for those deferrals.
    • Clarifies that the $125,000 threshold for tax‑return filing relief is based on a business’s annual value of products, gross proceeds of sales, and gross income from all activities subject to the B&O tax.
    • Repeals various outdated, redundant, or erroneous provisions and cross‑references.

Who is affected

  • Department of Revenue (administration and rulemaking/implementation).
  • Businesses and taxpayers generally (clarified filing timing, filing thresholds).
  • Specific programs and participants: Main Street community organizations, contributors to the Motion Picture Competitiveness Program, participants/claimants of the WFTC, fishermen/seafood processors (enhanced food fish tax), operators of self‑service storage, landlords selling tenant property, private moorage operators, and rural county investment project sponsors.
  • Cities that issue general business licenses (administrative partnership provisions clarified/removed as completed).

Fiscal and procedural notes

  • Appropriation: None specified. Fiscal note available.
  • Legislative action: Passed both chambers in 2023; delivered to and partially vetoed by the Governor on 5/9/2023. Chaptered as Chapter 374, 2023 Laws (partial veto).
  • Effective date: Stated effective date 7/23/2023; the bill contains multiple effective dates for different provisions (some sections reference the general effective timing of 90 days after adjournment in legislative reports). Check the enacted text for section‑by‑section effective dates.

Note on bill numbering: A different measure using the number SB 5565 appeared in the 2025 session (relating to bingo in senior communities). This summary pertains to the 2023 tax/revenue measure (Chapter 374, 2023 Laws).

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.