The House Finance Committee will be briefed on the recommendations of the State Tax Structure Work Group. Two of the recommendations moved forward at the December meeting may have implications for local governments: replacing the state B&O tax with a margins tax and lifting the one-percent limit on property taxes.

Changing the cap on property taxes to tie it to inflation and population growth is a proposal AWC has supported for several years.

A potential change from state B&O taxes to a margins tax could have implications on local B&O taxes. Because the committee’s research focused on state tax implications, AWC has asked whether the state can assist local jurisdictions with local B&O taxes to understand potential local tax impacts.

These recommendations will be introduced as legislation in the 2023 session, but it is unclear which proposals may be acted on this year.

Dates to remember

The House Finance Committee work session is scheduled for Thursday, January 12 at 1:30 pm.