City B&O tax model ordinance update almost finalized

The city B&O tax model ordinance update process is almost complete, and public stakeholder meetings have been scheduled this fall on the draft implementation guidance rule to get feedback on interpretation from the business community. The stakeholder meetings are scheduled for September 18 in Seattle and October 9 in Tacoma.

Once the work group of city finance directors and tax managers has finalized the city B&O tax model ordinance, all cities with a local B&O tax will need to adopt the mandatory city B&O tax model ordinance changes by January 1, 2020. The draft rule will provide uniform implementation guidance on the changes to service income apportionment.

We anticipate sending the finalized model to B&O tax cities by the end of September and we plan to provide education materials on the changes later this fall.