Washington Business 2019 Legislative Review & Vote Record | Page 31

issue area reports | taxation
AWB members and other stakeholders join Rep. Noel Frame, D-Greenwood, during a day of testimony in support of HB 1403, simplifying the municipal
B&O tax.
standard of proof for taxpayers to prevail
in audits — instead of showing that the
taxpayers’ position is “more likely than
not” correct, the taxpayer will have to
show “clea r, cogent , a nd conv i nci ng
evidence.” Ultimately the bill passed with
an amendment to sunset these higher
standards that tilt the playing field in favor
of the Department of Revenue in January
of 2022. AWB supported their immediate
removal with amendment 134. A similar
amendment was offered in the Senate, but
no roll call vote was taken.
ESSB 5998
graduated reet
Passed/AWB Opposed
Sponsored by freshman Sen. Joe Nguyen,
D-White Center, Engrossed Substitute
Bill considered as part of
AWB’s voting record
S e n a t e B i l l 59 98 c h a n g e s t h e s t a t e
real estate excise tax so that it will be
g raduated or tiered for the f irst time,
where the rate increases as the selling
pr ice of t he rea l proper t y increa ses,
rather than a f lat rate of 1.28%. Under
the bill, the rate now increases to 2.75%
on the portion of the selling price that is
greater than $1.5 million, and 3% on the
portion of the price that is greater than $3
million. The rate decreases to 1.1% on the
portion of the sale price that is less than
$500,000. Sales of undeveloped land,
timberland, and agricultural land will
remain unaffected. AWB opposed moving
to a g raduated rate scheme as it puts
greater impact on multi-family housing,
commercial, and industrial property.
Favorable outcome for
Washington businesses
SHB 2167
financial institutions
Passed/AWB Opposed
Originally introduced as a title-only bill
“Relating to tax revenue,” this bill became
one of the major tax increases of the session
when it was suddenly scheduled for a public
hearing with a new substitute bill in the
final 48 hours of session. Sponsored by Rep.
Gael Tarleton, D-Ballard, the bill became
a vehicle to impose a new 80% B&O tax
increase on specified financial institutions
with annual net income of at least $1 billion.
The bill was rushed out of committee on
the final Friday of the legislative session
with little time for fiscal or legal analysis,
let alone amendment and debate. There
a re rea l concerns that it v iolates the
Missed Opportunities
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