HB2020 creates a business and occupation tax deduction for payment card processors and increases the tax rate for certain payment card processing.

HB2020 amends Washington's business and occupation tax to create a deduction for payment card processors, allowing them to deduct interchange fees, network fees, and portions of fees retained by other processors. The bill also increases the tax rate for payment card processing activities to 3.0 percent. Revenues from the surcharge are deposited into the workforce education investment account. The changes take effect January 1, 2026.

HB2020 creates a business and occupation tax deduction for payment card processors and increases the tax rate for certain payment card processing.

HB2020 amends Washington's business and occupation tax to create a deduction for payment card processors, allowing them to deduct interchange fees, network fees, and portions of fees retained by other processors. The bill also increases the tax rate for payment card processing activities to 3.0 percent. Revenues from the surcharge are deposited into the workforce education investment account. The changes take effect January 1, 2026.