B&O tax cities need to adopt technical update to B&O model ordinance for SB 5199

SB 5199, changing the definition of printing and publishing income for local business and occupation (B&O) taxes, takes effect on January 1, 2024. The city B&O tax model ordinance has been updated with this technical change, and B&O tax cities need to update the provision in their municipal code.

The change is a technical update to RCW references in section .78 of the model ordinance corresponding to SB 5199’s changes to RCW 35.102.150. The definition changes are unlikely to impact current taxable newspaper printing and publishing tax allocation.

All cities with local B&O taxes should amend their ordinance provision with an effective date of January 1, 2024. This section in the model ordinance is not mandatory, but the tax treatment of this activity is required by RCW 35.102.150.

The legislative intent for the change also makes clear that while part of the definition of printing and publishing the activity is now partially in a new state B&O exemption for newspaper publishing, the city B&O tax model ordinance definition continues to include these as taxable activities and is not adopting a similar exemption.

Link to update of B&O tax model ordinance section .78

Additional background information can be found on AWC’s B&O tax and business license page.