The Department of Revenue task force to recommend changes to the two-factor formula for service income apportionment for local B&O taxes continues to meet monthly through July 2018. The task force representatives from cities and the business community began the process of reviewing other states’ models for allocating taxes. Both are also providing input on considerations or principles the task force should use in evaluating potential changes to the two-factor formula.
The House Finance Committee has already scheduled an update on the task force’s work during committee days in November.
If B&O tax cities have input on potential principles or feedback on your city’s experience in administering the two-factor formula for service income apportionment for local B&O taxes, please contact Victoria Lincoln or Sheila Gall.