Bill > HB1320

This bill modifies various business and occupation (B&O) tax rates in Washington state, increasing rates across multiple industries and business types. The bill gradually adjusts tax rates for sectors like manufacturing, wholesale and retail sales, semiconductor materials, aerospace product development, and other specific business categories. Key changes include raising the B&O tax rate for general business activities from 1.5% to 1.75% (and later to 2.1% and 1.925%), increasing rates for extractors, manufacturers, wholesalers, and specific industries like real estate, royalties, and contests of chance. The tax rate changes are generally phased in between 2025 and 2027, with some specific rates having different implementation timelines. The bill also includes provisions for annual tax performance reporting for certain industries and specifies that some sections will take effect on different dates, ranging from October 1, 2025, to January 1, 2034. The overall intent appears to be to adjust business taxation to potentially fund state programs and services, with a gradual approach to implementing the new rates.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1320&Year=2025&Initiative=false