We are seeking B&O tax city input on proposed changes to the current apportionment formula for potential inclusion in the task force’s recommendation and report to the Legislature.
The task force created by EHB 2005 to discuss potential changes to the two-factor apportionment formula for service-income for local B&O taxes has been meeting monthly for the last year. This task force consists of city and business community representatives with the goal of recommending changes to simplify the two-factor service income apportionment formula in RCW 35.102.130. The task force is nearing a critical deadline to reach agreement on recommendations and submit a report to the Legislature by October 31, 2018.
The last meeting included discussion of two alternative proposals that are close to a consensus recommendation on potential changes to the service income elements of the apportionment factors. Task force members are evaluating elements that would simplify tax administration for both cities and the business community related to the current service income factor and changing the definition of customer location from the current definition based on the location of in-person contacts with customers.
AWC is planning a meeting with B&O cities on Thursday, September 6 at 10 am to get input on proposed changes to the current formula for potential inclusion in the task force’s recommendation and discussion at the next task force meeting in September.
We strongly encourage city B&O finance directors, tax administrators, and lobbyists to watch for an invite email and attend the meeting.