B&O apportionment bill in Rules Committee

The bill to simplify the tests for the income factor of the two-factor apportionment formula for service income is in the Senate Rules Committee awaiting further action. SHB 1403 would implement the recommendations of the local B&O tax apportionment task force established by 2017’s EHB 2005.

It passed out of the Senate Ways & Means Committee on March 28 and moved to the Rules Committee. It is awaiting Rules Committee action to forward the bill to the Senate floor.

If SHB 1403 passes, cities with local B&O taxes will have a January 1, 2020 deadline to update the B&O tax model ordinance with the mandatory changes to apportionment of service income and incorporate the changes in their local B&O ordinances.