Several things worth noting:
- Three of the provisions are temporary and expire in 2013 - the B&O surcharge on most service businesses, the beer tax increase and the pop tax increase.
- To protect really small service businesses, the B&O surcharge includes a doubling of the small business tax credit. The small business credit protects the first $46,600 in gross receipts for small businesses from any B&O tax. Service businesses that generate up to $80,000 in annual service income would have a smaller B&O tax bill under this proposal than they do today.
- None of Washington's breweries are expected to be impacted by the beer tax increase.
- A B&O tax credit for jobs at Washington's candy manufacturers will buffer them from any negative impact of the candy sales tax.
- The first $10 million in volume of soda is exempt.
Total new revenue will equal $794.1. Again, much of the revenue is temporary.
We'll let you know when we expect to vote on the bill.