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Spin Control

WA Lege Day 55: Tax debate on B&O increase for services

OLYMPIA—Republican offer an amendment to strip out an increase to the business and occupation tax on service businesses.

The Senate Democrats’ proposal raises the current rate of 1.5 percent on gross receipts to 1.75 percent on one of the largest categories of businesses.

How big? Sen. Joe Zarelli, R-Ridgeview begins reading from the state manual:Accounting, actuarial, appraisers, architects, beauty salons, sales person, comp services, dentists orthodontist, graphic design…

Sen. Rodney Tom, D-Medina, said this is part of an attempt to spread the burden of the tax increase around. The general public pays a little more, businesses pay a bit more.

But the state is also doubling the small business tax credit, Sen. James Hargrove, D-Hoquiam says.

Amendment fails 20-27.

Democratic Sen. Kevin Ranker offers an amendment to remove real estate brokers and agents from the increase in the B&O tax.

That’s not consistent, Zarelli argues. Why pull out one profession?

Amendment fails on a voice vote.

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About this blog

Jim Camden is a veteran political reporter for The Spokesman-Review.

Jonathan Brunt is an enterprise reporter for The Spokesman-Review.

Kip Hill is a general assignments reporter for The Spokesman-Review.

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