Brief Description: Exempting wholesale sales of bulk unprocessed milk from the business and occupation tax.

Sponsors: By Representatives Linville, Kristiansen, Ericksen, McCune and Dunn.

House Committee on Finance
Senate Committee on Agriculture & Rural Economic Development
Senate Committee on Ways & Means

Background:

Washington's major business tax is the business and occupation (B&O) tax. The B&O tax is imposed on the gross receipts of business activities conducted within the state, without any deduction for the costs of doing business. Revenues are deposited in the State General Fund. A business may have more than one B&O tax rate, depending on the types of activities conducted. There are a number of different rates. The main rates are: 0.471 percent for retailing; 0.484 percent for manufacturing, wholesaling, and extracting; and 1.5 percent for professional and personal services, and activities not classified elsewhere.

Summary:

Wholesale sales of unprocessed milk are exempted from the state B&O tax.

Votes on Final Passage:

House   98   0
Senate   47   0

Effective: July 22, 2007