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 special edition 2019 29