WA People
BILL · 2025–26 SESSION · LATEST VERSION SHB 2020

HB 2020: Payment card processing/tax

Creating a business and occupation tax deduction and increasing the rate for persons conducting payment card processing activities.

Summary

  • Establishes a new business and occupation (B&O) tax rate of 3.1 percent for payment card processing activities.
  • Allows a B&O tax deduction for certain fees related to payment card processing.

From the Substitute House Bill Report (SHB 2020), written by the Legislature's nonpartisan staff. Read the full report ↗

Enacted Enacted · Chapter 401, Laws of 2025
  1. IntroducedFeb 24, 2025
  2. Out of committeeApr 8, 2025
  3. Passed HouseApr 17, 2025
  4. Passed SenateApr 26, 2025
  5. GovernorMay 20, 2025
  6. LawMay 20, 2025
Prime sponsor
April Berg (D-44)
Introduced
February 24, 2025 in the House
Last action
May 20, 2025
Session law
Chapter 401, Laws of 2025
Companion bill
SB 5777
Budget
Has a fiscal note
Versions
HB 2020, SHB 2020

AN ACT Relating to creating a business and occupation tax deduction and increasing the rate for persons conducting payment card processing activities;

Sponsors

Prime sponsor: April Berg (D-44)

5 co-sponsors (4 Democrats, 1 Republican)

Ed Orcutt R-20Joe Fitzgibbon D-34Mia Gregerson D-33Lisa Parshley D-22Timm Ormsby D-3

Votes

House · 3rd Reading & Final Passage

Passed April 17, 2025
Version voted on: SHB 2020
92 Yea 1 Nay 0 Absent 5 Excused
PartyYeaNayAbsentExcused
Democrat57101
Republican35004
How each member voted

Yea (92)

Nay (1)

Permalink to this vote

House · Final Passage on Reconsideration

Passed April 17, 2025
Version voted on: SHB 2020
91 Yea 4 Nay 0 Absent 3 Excused
PartyYeaNayAbsentExcused
Democrat55301
Republican36102
How each member voted

Yea (91)

Excused (3)

Permalink to this vote

Senate · 3rd Reading & Final Passage

Passed April 26, 2025
Version voted on: SHB 2020
47 Yea 0 Nay 0 Absent 1 Excused
PartyYeaNayAbsentExcused
Democrat29000
Republican18001
How each member voted

Yea (47)

Excused (1)

Permalink to this vote

History

  1. Effective date 1/1/2026. (SHB 2020)
  2. Chapter 401, 2025 Laws. (SHB 2020)
  3. Governor signed. (SHB 2020)
  4. Delivered to Governor. (SHB 2020)
  5. President signed. (SHB 2020)
  6. Speaker signed. (SHB 2020)
  7. Third reading, passed; yeas, 47; nays, 0; absent, 0; excused, 1. (SHB 2020)
  8. Rules suspended. Placed on Third Reading. (SHB 2020)
  9. Passed to Rules Committee for second reading. (SHB 2020)
  10. Placed on second reading by Rules Committee. (SHB 2020)
  11. WM - Majority; do pass. (SHB 2020)
  12. First reading, referred to Ways & Means. (SHB 2020)
  13. Third reading, passed; yeas, 91; nays, 4; absent, 0; excused, 3. (SHB 2020)
  14. Vote on third reading will be reconsidered. (SHB 2020)
  15. Third reading, passed; yeas, 92; nays, 1; absent, 0; excused, 5. (SHB 2020)
  16. Rules suspended. Placed on Third Reading. (SHB 2020)
  17. 1st substitute bill substituted. (SHB 2020)
  18. 1st substitute bill substituted.
  19. Rules Committee relieved of further consideration. Placed on second reading. (SHB 2020)
  20. Rules Committee relieved of further consideration. Placed on second reading.
  21. APP - Majority; 1st substitute bill be substituted, do pass. (SHB 2020)
  22. Referred to Rules 2 Review. (SHB 2020)
  23. Referred to Rules 2 Review.
  24. APP - Executive action taken by committee.
  25. APP - Majority; 1st substitute bill be substituted, do pass.
  26. Referred to Appropriations.
  27. FIN - Executive action taken by committee.
  28. FIN - Majority; do pass.
  29. First reading, referred to Finance.

HB 2020 in other sessions

Bill numbers restart every two years, so the same number is a different bill in each session.

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