Lawmakers propose lowering B&O tax for some rural manufacturers
Last updated 2/6/2019 at 4pm
A bipartisan bill introduced in the Rural Development, Agriculture & Natural Resources Committee would reduce the business and occupation tax for manufacturers and publishers of printed materials and periodicals, excluding newspapers. It would also extend the preferential B&O tax rate for timber and woods products.
The B&O tax is Washington stateâ€™s major business tax, according to committee documents. The tax is imposed against a companyâ€™s gross income and does not deduct the cost of doing business.
â€śAs folks know â€¦ the drawbacks to expanding our rural economy is just access to capital, and capital that will work,â€ś said prime sponsor Rep. Mike Chapman, D-Port Angeles.
If passed, the general manufacturing, wholesale, and retailing B&O rate for manufacturers, processors for hire, non-newspaper printers would be reduced incrementally over the next 11 years, to ease the impact of lost revenue on the state.
The new reduced B&O tax rate for the targeted rural industries would be as low as 0.2904 percent and remain in effect until July 1, 2056,
â€śThe benefit youâ€™re providing here is not just financial, although thatâ€™s significant,â€ť said Dave Gering on behalf of the Seattle Manufacturing Industrial Council. â€śYouâ€™re sending a signal that you care about them, that youâ€™re not afflicting them with one more regulation.â€ť
The bill is scheduled to be heard in an executive session on Feb. 6.