Rep. Drew MacEwen has introduced House Bill 2068, which would provide business and occupation (B&O) tax relief for most of the 360,000 businesses in the state that pay the tax. Under the bill, all businesses would be exempt from B&O tax liability on their first $200,000 of taxable income.

“This three-page bill would provide meaningful tax relief to hundreds of thousands of business owners across Washington state,” said MacEwen, R-Union. “Under my plan, these employers would have more money available to grow their businesses and hire new employees.”

According to an estimate from the nonpartisan Office of Program Research, all businesses with gross receipts less than $3,050,000 would see a tax cut.

“The goal of this legislation is to spur economic growth and get all of Washington working again,” said MacEwen. “Many folks in communities across the state are still struggling in the aftermath of the great recession. Jobs were lost that never came back. I believe this bill could be the catalyst for the economic revitalization these communities so desperately need.”

Under House Bill 2068, current B&O tax rates would be adjusted to make the bill revenue neutral, meaning it would not impact the state’s operating budget. The bill awaits a hearing in the House Finance Committee. If signed into law, it would take effect Jan. 1, 2018.

The 2017 legislative session began Jan. 9 and is scheduled to adjourn April 23.

PHOTO CAPTION: Rep. Drew MacEwen, R-Union, discusses his B&O tax reform bill with NFIB/Washington Small Business “Day at the Capitol” attendees on Feb. 9, 2017.