B&O tax apportionment workgroup nearing final recommendations

B&O tax cities provided feedback earlier this month on proposed changes to the current apportionment formula for possible inclusion in the task force’s recommendation and report to the Legislature.

The task force created by EHB 2005 has two remaining meetings to reach agreement on recommendations and submit a report to the Legislature by October 31, 2018.

The next meeting on September 25 will focus on further discussion of alternative proposals from the business and city task force representatives, which are close to consensus on potential changes to the service income factor for apportionment. Task force members have been discussing changes to the definition of customer location from the current definition based on the location of in-person contacts with customers to one based on a hierarchy of commonly available business information.

AWC appreciates the input cities provided in the meeting held with B&O tax cities earlier this month to review the proposed changes, which was shared with the business community representatives the following week for their review and feedback.