| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Finance Committee | |
HB 2155
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Creating a business and occupation tax credit for eligible call centers.
Sponsors: Representatives Hudgins, Conway, Cody, VanDeWege, Appleton, Seaquist, Williams, Chase and Simpson.
Brief Summary of Bill |
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Hearing Date: 2/27/07
Staff: Rick Peterson (786-7150).
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.
Businesses that use various tax incentives file an annual accountability report with the
Department of Revenue (DOR). The report includes employment, wage, and employer-provided
health and retirement benefit information for full-time, part-time, and temporary positions.
Summary of Bill:
A B&O credit of $1,000 each year for up to four years is allowed for creating job positions in call
centers.
To qualify the job positions must be in a call center with at least 5,000 square feet of space which
primarily provides product support or product information services. All employees at the call
center must be working legally in the United States and 75 percent of employees must directly
provide product support or product information services.
The employment positions must pay at least 120 percent of Washington's minimum wage and
average 35 hours per week. Credits may be earned for positions filled by employees that have
graduated from an institution of higher education in Washington.
At least 90 percent of employees of the taxpayer must work in the United States and the taxpayer
must maintain at least 20 employment positions in each year a credit is taken. Taxpayers using
the tax cannot encourage or discourage unionization.
Taxpayers taking job credits must file an annual accountability survey. The tax credit program
ends January 1, 2012.
Appropriation: None.
Fiscal Note: Requested on February 19, 2007.
Effective Date: The bill takes effect on August 1, 2007.