Removing a tax exemption for the warehousing and reselling of prescription drugs.

HB 2707 ends a tax exemption for drug wholesalers and retailers that warehouse and resell prescription drugs, requiring them to pay a 0.5% tax on their gross income starting January 1, 2027. The bill directly affects businesses registered with the federal Drug Enforcement Administration and licensed by Washington’s Pharmacy Quality Assurance Commission. It repeals the existing tax exemption (RCW 82.04.272) and adds the activity to the state’s taxable business list under RCW 82.04.280. The change aims to generate revenue for state services by updating outdated tax preferences.