(1) For the purposes of implementing sections 101 through 814, chapter 238, Laws of 2026, the department of revenue is required to regularly consult with the advisory group created in this section.
(2) The advisory group members must include:
(a) The director of the department of revenue, or their appointees;
(b) The director of the office of financial management, or their appointees;
(c) The director of the office of minority and women's business enterprises, or their appointees;
(d) Two members of the senate, one from each of the major caucuses and appointed by the president of the senate;
(e) Two members of the house of representatives, one from each of the major caucuses and appointed by the speaker of the house of representatives; and
(f) Ten members appointed by the governor from a list of recommendations made by the president of the senate and the speaker of the house, to include members representing the following groups:
(i) Two certified public accountants;
(ii) Two members of the tax section of the Washington state bar association;
(iii) One member from the office of the attorney general;
(iv) One member from a small business association that has membership throughout the state;
(v) One member from a large business association; and
(vi) One member of a federally recognized Indian tribe recommended by the governor's office of Indian affairs.
(3) Staff support for the advisory group will be provided by the department of revenue.
(4) Staff support for the legislative members during the advisory group meetings shall include nonpartisan staff from senate committee services and the house of representatives office of program research as well as partisan staff for the majority and minority caucuses in the senate and the house of representatives.
(5) After July 1, 2026, the advisory group must meet regularly to be consulted on the implementation of chapter 238, Laws of 2026 and to make recommendations regarding the implementation and administration of chapter 238, Laws of 2026, including:
(a) The implementation and administration of the pass-through entity election, including the requirements and timing of the election;
(b) The development of a state schedule K-1;
(c) Filing requirements, including documents required to be included;
(d) The administration and implementation of the opt-in safe harbor provision;
(e) The implementation and administration of extending sales tax to services; and
(f) Other essential administrative and implementation matters to be determined by the advisory group.
(6) The department of revenue is required to provide:
(a) An initial report by December 15, 2026, to the fiscal committees of the house of representatives and the senate that are responsible for the state's tax policy. This report must include any recommended changes identified during the first phase of implementation that may require legislation during the 2027 session; and
(b) A final report of recommendations related to the administration of the tax by December 15, 2027, to the fiscal committees of the house of representatives and the senate that are responsible for the state's tax policy.
