Saturday, April 10, 2010

This is it

The revenue agreement.

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.
The spreadsheet noted above does not include other revenue measures in separate bills. The cigarette tax has already passed the House (it's now in the Senate), the convention center bill has already been delivered to the Governor, and the lottery marketing bill has passed the Senate and awaits action in the House.

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.