Bill: SB 5113 (HB 1550) — 2017
Investing in education by modifying the business and occupation tax and providing small business tax relief (Braun, Ranker)
Modifies the business and occupation tax and provides small business tax relief to invest in education.
EFFECT OF SENATE STRIKER AMENDMENT:
(1) The filing threshold for B&O taxes is increased to $150,000. A deduction of $250,000 is authorized for businesses with a taxable amount of less than or equal to $250,000. If a business' taxable amount is greater than $250,000, but less than $500,000, there is a deduction of $100,000.
(2) If a taxpayer claims a multiple activities tax credit, they can claim a credit instead of a deduction. The credit for a calendar year will be equal to the lesser of the tax otherwise due for that calendar year or an amount determined as follows: (a) For a person with a taxable amount of less than or equal to $250,000: $250,000 multiplied by the highest applicable B&O rate to the taxpayer; or (b) For a person with a taxable amount of greater than $250,000, but less than $500,000: $100,000 multiplied by the highest applicable B&O rate to the taxpayer.
(3) A 20 percent surcharge on the B&O tax is imposed for selected business activities: (a) Beginning July 1, 2017: Extractors, manufacturers, most retailers, real estate brokers, digital products or services, nonprofit research and development, insurance producers, hospitals, salmon canning, radioactive waste clean-up, wholesalers, insurance agents, radio and television broadcasters, government contractors, printers, publishers, highway contractors, extracting or processing for hire, warehousing, contest of chance, international investment management, custom software, loan interest, royalties, professional employer organizations, day care, chemical dependency services, and grocery distribution co-ops; and (b) Beginning July 1, 2024: Newspapers.
(4) The small business B&O credit is repealed.
(5) Provides an effective date of October 1, 2017.
WA State Legislature Link:
http://app.leg.wa.gov/billsummary?BillNumber=5113&Year=2017 (opens a new browser tab)
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