Bill > HB2097

This bill authorizes Washington counties to impose a business and occupation (B&O) tax, addressing several key aspects of such taxation. The bill aims to provide counties with an additional revenue source to fund services like behavioral health, public safety, transit, and waste management, recognizing the limitations of current funding methods like sales and property taxes. Counties would be allowed to levy a B&O tax at a maximum rate of 0.0020, with any rate increase requiring voter approval. The bill mandates the creation of a model ordinance through a committee that includes county representatives and business stakeholders, which will establish uniform definitions, tax classifications, and provisions such as a minimum small business tax threshold of $20,000 in annual gross income. The legislation includes detailed provisions for tax implementation, including rules for multiple taxation credits, reporting frequencies, penalties, and income allocation methods. Importantly, counties can only impose the tax on businesses with sufficient nexus (connection) to the county, and must provide ways to avoid double taxation for businesses operating in multiple jurisdictions. The bill is designed to give counties more flexible taxing options while maintaining fairness and transparency for businesses, with most provisions set to take effect on January 1, 2027.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2097&Year=2025&Initiative=false