This Washington
Possible B&O Tax Deal in the Works in Oly
Word in Olympia is that Senate will consider lowering their temporary 0.3 sales tax increase if the House, which adamantly opposes the sales tax increase, matches the Senate's longer list of B&O (business) tax increases.
Here's the Senate's list of service-based businesses subject to the tax increase:
The Senate's longer list would raise an estimated $170.8 million in new revenue, whereas the House's would raise only $46.6 million—a $124 million difference.
Another selling point in the Senate plan's favor: It would raise the B&O tax by about half as much as the House. Also, to protect small businesses, the Senate's plan doubles the small business B&O tax credit. And the Senate's increase would last three years. The Houses would last five years.
One big problem, though. The sales tax increase would raise $312 million, $142 million more than the B&O plan.
Here's the Senate's list of service-based businesses subject to the tax increase:
Accounting
Legal
Business support services
Computer systems design
Data processing
Facilities support services
Investment advice services
Management, scientific, and technical consulting services
Administrative management and general management services
Human resources consulting services
Marketing consulting services
Process, physical distribution, and logistics consulting services
Environmental consulting services
Marketing research and public opinion poling services
Office administrative services
Parking lot management services
Promotion services for performing arts, sporting, and similar events
Public relations services
Scientific research and development services including research and development in the physical, engineering and life sciences
Other professional, scientific, and technical services
And the House's much shorter list:
Accounting
Tax preparation
Bookkeeping
Payroll services
Advertising and related services, which includes public relations services, direct mail advertising services, and display advertising services
Agent and management services for artists, athletes, entertainers, and other public figures
Legal services
Management, scientific, and technical consulting services
Marketing research and public opinion polling services
Promoting services for the performing arts, sporting, and similar events
The Senate's longer list would raise an estimated $170.8 million in new revenue, whereas the House's would raise only $46.6 million—a $124 million difference.
Another selling point in the Senate plan's favor: It would raise the B&O tax by about half as much as the House. Also, to protect small businesses, the Senate's plan doubles the small business B&O tax credit. And the Senate's increase would last three years. The Houses would last five years.
One big problem, though. The sales tax increase would raise $312 million, $142 million more than the B&O plan.
