2023 legislative review
The bill would have replaced a graduated penalty schedule with a flat 9 % fee for late filing . This bill would have fixed an administrative burden and penalties on taxpayers , addressing a challenge businesses face in the B & O tax system . AWB worked hard on this bill with the prime sponsor and the Department of Revenue . Unfortunately , the bill remained stuck in the Appropriations Committee .
HB 1527 tax increment financing
Passed / AWB Supported sponsor : Rep . Sharon Wylie , D-Vancouver
The bill makes technical corrections to tax increment financing areas and requirements . AWB supported the bill , which fixes the definition of real property to ensure private investments on publicly owned land are included in the increment value and that government-owned facilities are eligible projects . A main issue is that port districts , the economic development driver in many communities , cannot participate as they retain ownership of land and either lease out buildings or have private development on port-owned land . Tax increment financing is an important economic development tool that also preserves property tax principles . The final bill passed the Senate 49-0 and the House 72-24 .
HB 1473 / SB 5486 wealth tax
Failed / AWB Opposed sponsors : Rep . My-Linh Thai , D-Bellevue ; Sen . Noel Frame , D-Seattle
This legislation proposed a 1 % tax on intangible assets , such as stocks , bonds , trademarks , cash , etc . above $ 250 million , bringing in an estimated $ 6.4 billion in the 2025-2027 biennium . All revenue collected from the tax would be placed equally into the Disabilities Care Trust Account , Education Legacy Account , the Washington Housing Trust Fund , and
Rep . Amy Walen , D-Kirkland , chairs the House Consumer Protection & Business Committee .
the Taxpayer Justice Account . The bill faced strong opposition , and the state ’ s bipartisan Tax Structure Work Group did not recommend the proposal to lawmakers . Fortunately , both bills died in their policy committees .
HB 1644 / SB 5482 margin tax
Failed / AWB Opposed sponsors : Rep . Amy Walen , D-Kirkland , and Sen . Noel Frame , D-Seattle
HB 1644 and companion bill SB 5482 proposed to replace the state ’ s B & O tax with a modified income tax , where the taxpayer can write off some of the tax by a deduction . The tax is calculated as worldwide income minus the greater of four deductions such as costs of goods sold , compensation paid , 30 % of gross receipts , or a flat 1 million . This hurts businesses because it ’ s shifts taxes between different business such as manufacturing or service and other . A better solution would be to reduce taxes on businesses and fix the already existing challenges within the B & O tax system . A much deeper look about the implications this has for all businesses that have lost revenue in needed due to economic downturns before this bill is implemented .
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