Legislation amends last year’s complex B&O tax increase to fund higher education
In 2019, Governor Jay Inslee signed into law a complex plan to tax businesses in order to make higher education more affordable. The legislation that passed increased the Business and Occupation (B&O) tax from 1.5% to 1.8%. But after discovering it might not cover the cost from lowering tuition, and because it would be more difficult to collect, the Legislature last week passed a new bill designed to streamline the three-tier system and set a uniform tax rate for most businesses at 1.75%. The new rate is expected to raise approximately $234 million over the 2021-23 budget cycle to fund the Washington College Grant. The bill was delivered to the Governor for signing so it can be in place before the first quarter B&O tax filings.
Posted February 14, 2020