SHB 1403 would implement the recommendations of the local B&O tax apportionment task force established by 2017’s EHB 2005.
SHB 1403 was heard in the Senate Ways & Means Committee and is scheduled to move out of committee on March 25. The bill would simplify the tests for the income factor of the two-factor apportionment formula for service income. Thank you to Joseph Cunha, Seattle Tax Administrator and participant in the 14-month task force process, for testifying on the bill on behalf of cities.
If the bill passes, cities with local B&O taxes will be required to update the B&O tax model ordinance and amend their local B&O ordinances to implement the mandatory changes to apportionment of service income by January 1, 2020.