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Bill > SB5482

WA SB5482

WA SB5482
Concerning the margin tax.

summary

Introduced
01/19/2023
In Committee
01/19/2023
Crossed Over
Passed
Dead
04/12/2024

Introduced Session

2023-2024 Regular Session

Bill Summary

AN ACT Relating to the margin tax; amending RCW 34.05.328, 2 82.04.020, 82.04.066, 82.04.067, 82.04.080, 82.04.2403, 82.04.310, 3 82.04.311, 82.04.320, 82.04.322, 82.04.323, 82.04.340, 82.04.350, 4 82.04.360, 82.04.380, 82.04.390, 82.04.405, 82.04.408, 82.04.4282, 5 82.04.4283, 82.04.4284, 82.04.4285, 82.04.4286, 82.04.4293, 6 82.04.4339, 82.04.440, 82.04.4497, 82.04.4499, 82.04.615, 82.04.767, 7 82.04.261, 82.04.285, 82.04.286, 82.04.29004, 82.04.290, 82.04.510, 8 82.32.045, 82.32.057, 82.32.090, 9.41.100, 9.46.071, 9.91.180, 9 28C.18.200, 35.87A.010, 35.102.160, 43.06.400, 43.365.020, 48.14.080, 10 48.62.151, 48.64.110, 48.180.055, 48.190.100, 49.04.220, 81.112.330, 11 82.02.250, 82.04.010, 82.04.051, 82.04.062, 82.04.2404, 82.04.280, 12 82.04.294, 82.04.297, 82.04.324, 82.04.385, 82.04.4265, 82.04.540, 13 82.04.293, 82.04.4328, 82.04.431, 82.08.0209, 82.08.02807, 14 82.08.0531, 82.08.052, 82.08.0291, 82.08.0311, 82.08.207, 82.08.806, 15 82.08.820, 82.08.830, 82.08.965, 82.08.9651, 82.08.970, 82.08.990, 16 82.12.02749, 82.12.0311, 82.12.970, 82.14B.061, 82.16.0496, 17 82.16.100, 82.16.325, 82.19.050, 82.29A.137, 82.32.030, 82.32.450, 18 82.32.534, 82.32.537, 82.32.670, 82.32.710, 82.32.790, 82.45.195, 19 84.36.645, 84.36.655, 88.46.010, and 90.56.010; reenacting and 20 amending RCW 82.04.299, 43.79.195, 82.04.050, 82.04.170, 82.04.190, 21 and 88.40.011; adding new sections to chapter 82.04 RCW; adding a new 22 section to chapter 82.08 RCW; creating new sections; repealing RCW 23 43.365.050, 82.04.212, 82.04.220, 82.04.230, 82.04.240, 82.04.250, SB 5482 1 82.04.255, 82.04.257, 82.04.258, 82.04.260, 82.04.2602, 82.04.263, 2 82.04.270, 82.04.272, 82.04.29001, 82.04.29002, 82.04.29005, 3 82.04.2905, 82.04.2906, 82.04.2907, 82.04.2908, 82.04.2909, 4 82.04.298, 82.04.301, 82.04.315, 82.04.317, 82.04.321, 82.04.326, 5 82.04.327, 82.04.330, 82.04.331, 82.04.332, 82.04.333, 82.04.334, 6 82.04.335, 82.04.337, 82.04.338, 82.04.339, 82.04.3395, 82.04.355, 7 82.04.363, 82.04.367, 82.04.368, 82.04.370, 82.04.392, 82.04.399, 8 82.04.410, 82.04.415, 82.04.418, 82.04.4201, 82.04.421, 82.04.422, 9 82.04.423, 82.04.425, 82.04.4251, 82.04.426, 82.04.4261, 82.04.4262, 10 82.04.4263, 82.04.4264, 82.04.4266, 82.04.4267, 82.04.4268, 11 82.04.4269, 82.04.427, 82.04.4271, 82.04.4272, 82.04.4274, 12 82.04.4275, 82.04.4281, 82.04.4287, 82.04.4289, 82.04.4290, 13 82.04.4291, 82.04.4292, 82.04.4294, 82.04.4295, 82.04.4296, 14 82.04.4297, 82.04.4298, 82.04.4311, 82.04.432, 82.04.4327, 82.04.433, 15 82.04.4331, 82.04.4332, 82.04.4337, 82.04.43391, 82.04.43392, 16 82.04.43393, 82.04.43395, 82.04.43396, 82.04.434, 82.04.4451, 17 82.04.44525, 82.04.4461, 82.04.4463, 82.04.447, 82.04.448, 18 82.04.4481, 82.04.4482, 82.04.4486, 82.04.4489, 82.04.449, 19 82.04.4496, 82.04.4498, 82.04.460, 82.04.462, 82.04.520, 82.04.545, 20 82.04.600, 82.04.601, 82.04.610, 82.04.620, 82.04.627, 82.04.628, 21 82.04.635, 82.04.640, 82.04.645, 82.04.650, 82.04.660, 82.04.750, 22 82.04.755, 82.04.756, 82.04.758, 82.04.765, 82.04.770, 82.04.775, 23 82.04.900, and 82.32.533; providing an effective date; providing a 24 contingent effective date; providing an expiration date; and 25 providing contingent expiration dates. 26

AI Summary

This bill proposes to convert Washington's business and occupation tax into a modified gross receipts tax, to be known as the "margin tax." The key provisions of the bill are: This bill: - Establishes a new "margin tax" imposed on virtually all business activities carried on within the state, with a tax rate of 3.1966 percent. Taxpayers can deduct either 30 percent of their gross income, a $1 million standard deduction, their cost inputs, or their compensation costs to calculate their taxable margin. - Creates a combined reporting requirement for affiliated groups engaged in a unitary business, with joint and several liability. - Provides a simplified tax calculation option for small businesses with less than $5 million in gross income. - Retains existing business and occupation tax surcharges, which are in addition to the margin tax. - Requires estimated quarterly margin tax payments for taxpayers owing $20,000 or more in the prior year. - Allows taxpayers to temporarily carry forward unused business and occupation tax credits for a period of time. - Provides a credit for margin taxes paid to other states on extracted, manufactured, or sold products. - Modifies various exemptions and deductions from the business and occupation tax. The bill is generally intended to address issues with the gross receipts structure of the existing business and occupation tax, including the impacts on new, small, and low-margin businesses. The margin tax is proposed to take effect starting January 1, 2027.

Committee Categories

Business and Industry

Sponsors (13)

Last Action

By resolution, reintroduced and retained in present status. (on 01/08/2024)
(1 Companion Bills)

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