1261-S AMH MORR H2746.1

SHB 1261 - H AMD 105 WITHDRAWN 3-19-97

By Representative Morris

    On page 2, line 4, after "is" strike "thirty-five" and insert "((thirty-five)) one hundred five"

EFFECT:  Increases the small business B&O tax credit from $35 per month to $105 per month ($1,260 per year).  Fiscal impact of $94.55 million in 1997-99 biennium.  The impact at different tax rates is as follows:

                                       Current Law   Proposed

                                       $35/month      $105/month

                                       $420/year     $1,260/year

Retailing (0.471% B&O tax rate)

No B&O tax when income below:          $ 89,172      $267,516

Reduced B&O tax when income below:     $178,344      $535,032

Manufacturing/Wholesaling

(0.484% B&O tax rate)

No B&O tax when income below:          $ 86,777      $260,331

Reduced B&O tax when income below:     $173,554      $520,661

Service - other (1.75% B&O tax rate)

No B&O tax when income below:          $ 24,000      $ 72,000

Reduced B&O tax when income below:     $ 48,000      $144,000

Business Services (2.0% B&O tax rate)

No B&O tax when income below:          $ 21,000      $ 63,000

Reduced B&O tax when income below:     $ 42,000      $126,000

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