Lawmakers propose lowering B&O tax for some rural manufacturers

  • Saturday, February 2, 2019 1:30am
  • Business

A bipartisan bill introduced in the Rural Development, Agriculture & Natural Resources Committee would reduce the business and occupation tax for manufacturers and publishers of printed materials and periodicals, excluding newspapers. It would also extend the preferential B&O tax rate for timber and woods products.

The B&O tax is Washington state’s major business tax, according to committee documents. The tax is imposed against a company’s gross income and does not deduct the cost of doing business.

“As folks know … the drawbacks to expanding our rural economy is just access to capital, and capital that will work,” prime sponsor Rep. Mike Chapman, D-Port Angeles, said.

If passed, the general manufacturing, wholesale, and retailing B&O rate for manufacturers, processors for hire, non-newspaper printers would be reduced incrementally over the next 11 years, to ease the impact of lost revenue on the state.

The new reduced B&O tax rate for the targeted rural industries would be as low as 0.2904 percent and remain in effect until July 1, 2056,

“The benefit you’re providing here is not just financial, although that’s significant,” Dave Gering, on behalf of the Seattle Manufacturing Industrial Council, said.

“You’re sending a signal that you care about them that you’re not afflicting them with one more regulation.”

The bill is scheduled to be heard in an executive session on Feb. 6.

More in Business

Business news — Feb. 5, 2020

Cedarbrook sets grand opening Cedarbrook Lavender Gift Shop hosts a Grand Opening… Continue reading

Business spotlight: Business buzzing, growing for Sequim Bee Farm

Good Food Awards recognizes couple seventh time in five years

Business news — Jan. 29, 2020

Steffes gets high honors in essential oils competition Susan Steffes of Fleurish… Continue reading

Spirited, sustainable in Sequim: Two Hooligans Cider entrepreneurs look to build business, community

Gleaning (definition) — 1. gather information from various sources; 2. collect leftover… Continue reading

Business news — Jan. 22, 2020

Clear Creek RV has new manager Under new management, Clear Creek RV… Continue reading

Business news — Jan. 15, 2020

Paradise changes hours Paradise Restaurant, 703 N. Sequim Ave., has changed hours,… Continue reading

Business news — Jan. 8, 2020

Jamestown EDA offers free ‘Bootstrap’ course The Jamestown S’Klallam Economic Development Authority… Continue reading

Revenue offers free business taxes webinar

Gallery sets winter hours Sequim’s Blue Whole Gallery has new hours. Through… Continue reading

Business spotlight: Owners put new shimmer in Sunshine Café with remodel

Eatery offers alcohol with plans to open some nights this spring

Statewide payroll hiring bounces back in November

Washington state’s economy gained 12,200 jobs in November and the state’s seasonally… Continue reading

Sequim I.T. hosts cell smartphone basics class

More than 60 people attended a free Samsung Smartphone Basics class held… Continue reading

Dungeness Courte celebrates No. 20

Twenty years and going strong: Staff and community members celebrate Dungeness Courte… Continue reading