Washington State House of Representatives Office of Program Research | BILL ANALYSIS |
Finance Committee |
HB 2110
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 uniform business and occupation tax rate.
Sponsors: Representative Haler.
Brief Summary of Bill |
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Hearing Date: 1/21/14
Staff: Dominique Meyers (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. Businesses must pay B&O tax even though they may not have any profits or may be operating at a loss. A business may have more than one B&O tax rate, depending on the types of activities conducted. Major tax rates are 0.471 percent for retailing; 0.484 percent for manufacturing, wholesaling, and extracting; and 1.5 percent for services, and activities not classified elsewhere. Several lower rates also apply to specific business activities. There are currently 12 B&O tax rates for 51 business tax classifications.
Summary of Bill:
This bill consolidates most of the major B&O rates and preferential B&O rates to one consolidated rate of 0.2904 percent.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.