Washington § 82.04.289 - Qualifying existing contracts. (Expires July 1, 2031.)

(1) For amounts received during the chapter 422, Laws of 2025 transition period, a person with a qualifying existing contract may elect to treat such amounts as gross income of the business subject to the tax under either RCW 82.04.250 or 82.04.290(2).

(2) If a person with a qualifying existing contract makes no election under subsection (1) of this section during the transition period, amounts received from performing the services of that contract during the transition period are gross income of the business subject to the tax under RCW 82.04.250.

(3) If a person either elects to treat amounts received under a qualifying existing contract as gross income of the business subject to the tax under RCW 82.04.250, gross income of the business subject to the tax under RCW 82.04.250(2), or both, the amounts are subject to the tax imposed under chapter 82.08 RCW.

(4) For the purposes of this section:

(a) "Altered" means any of the following:

(i) Materially or substantively changed;

(ii) Amended; or

(iii) Renewed;

(b) "Qualifying existing contract" means a contract that meets all the following criteria:

(i) The contract was signed and executed before October 1, 2025;

(ii) The underlying services provided continued after October 1, 2025;

(iii) The underlying services of that contract would be services defined as a retail sale under *RCW 82.04.050(3) (g) through (l) beginning October 1, 2025; and

(iv) The contract was not altered during the transition period; and

(c) "Transition period" and "chapter 422, Laws of 2025 transition period" mean the period of time beginning October 1, 2025, and ending on March 31, 2026.

(5) This section expires July 1, 2031.

*Reviser's note: RCW 82.04.050 was amended by 2026 c 238 s 1001 (effective January 1, 2029), 2026 c 238 s 1101, and 2026 c 250 s 2, changing subsection lettering.

Retroactive application—2026 c 250 ss 2-4, 8, 10, 12-18, and 22: See note following RCW 82.04.050.