summary
Introduced
01/27/2023
01/27/2023
In Committee
01/27/2023
01/27/2023
Crossed Over
Passed
Dead
04/12/2024
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, HB 1644 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, known as the "margin tax." The key provisions are:
This bill:
- Establishes a new "margin tax" that is imposed on virtually all business activities carried on within the state, with a tax rate of 3.1966 percent on a taxpayer's "taxable margin."
- Defines "taxable margin" as a taxpayer's worldwide gross income of the business less either: 30 percent of such income, a standard deduction of $1 million, the taxpayer's cost inputs, or the taxpayer's compensation.
- Requires taxpayers to register, file, and pay the margin tax as a combined group, with joint and several liability.
- Provides temporary carryover credits for unused business and occupation tax credits.
- Provides a credit for taxpayers that are subject to the margin tax and other taxes or fees in multiple jurisdictions.
- Exempts certain small businesses with less than $5 million in gross income from filing requirements and allows them to pay a simplified 1.75 percent tax rate.
- Maintains existing business and occupation tax "surcharges" in addition to the new margin tax.
- Makes various technical and conforming amendments to existing tax laws.
The bill is intended to address hardships on new, small, and unprofitable businesses under the current gross receipts-based business and occupation tax, while preserving tax revenue. It also aims to maintain tribes' current tax revenue-sharing benefits.
Committee Categories
Budget and Finance
Sponsors (5)
Last Action
By resolution, reintroduced and retained in present status. (on 01/08/2024)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://app.leg.wa.gov/billsummary?BillNumber=1644&Year=2023&Initiative=false |
| Fiscal Note - 1644 HB (Revised) | https://fnspublic.ofm.wa.gov/FNSPublicSearch/GetPDF?packageID=67817 |
| Fiscal Note - 1644 HB (Revised) | https://fnspublic.ofm.wa.gov/FNSPublicSearch/GetPDF?packageID=67047 |
| Fiscal Note - 1644 HB (Final) | https://fnspublic.ofm.wa.gov/FNSPublicSearch/GetPDF?packageID=66792 |
| House Bill Analysis 2023 | https://lawfilesext.leg.wa.gov/biennium/2023-24/Pdf/Bill%20Reports/House/1644%20HBA%20FIN%2023.pdf |
| BillText | https://lawfilesext.leg.wa.gov/biennium/2023-24/Pdf/Bills/House%20Bills/1644.pdf |
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