Washington State House Budget Includes 0.5% B&O Increase for Accountants

In its budget proposal released Monday, March 1, the House proposes a 0.5% increase in the B&O for accountants, among a handful of other services.  The surtax proposal can be found in section 2002, page 142 of SHHB 3191:

http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Bills/House%20Bills/3191-S.pdf

 

Details are also in the Bill Analysis at the bottom of page 16:

http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Bill%20Reports/House/3191%20HBA%20FIN%2010.pdf

 

Starting months before this legislative session, WSCPA discussions with key legislators have been focused on not imposing a sales tax on services, which they have not.  If there is any good news here, that’s about it.  Also, keep in mind that this is one of three budget proposals on the table right now.  Neither the Senate’s nor the Governor’s proposals include this B&O surtax.   At some point in the next 10 days lawmakers will have to make some choices. 

 

Check the legislature's website for information about any bill: http://www.leg.wa.gov/pages/home.aspx

 

Click here to read a summary of the Bill.

 

Business and Occupation Surtax on Certain Services

 

A temporary B&O surtax of 0.5 percent is imposed on the following service categories:

 

1. accounting, tax preparation, bookkeeping, and payroll services;

 

2. advertising and related services, which includes public relations services, direct mail advertising services, and display advertising services;

 

3. agent and management services for artists, athletes, entertainers, and other public figures;

 

4. legal services, which includes attorney services, paralegal services, title services, title abstract services, title search services, and notary services;

 

5. management, scientific, and technical consulting services including, administrative management services, human resource consulting services, marketing consulting services, logistic consulting services, and environmental consulting services;

 

6. marketing research and public opinion polling services; and promoting services for performing arts, sporting, and similar events.

 

The surtax ends on July 1, 2015.

 

Source:  Judy Love, WSCPA Director of Advocacy