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House Finance hears bill to add B&O surcharge on highest‑grossing businesses, raises financial institution surcharge
Summary
House Finance on April 3 heard testimony on HB 2045, a bill that would add a 1% business‑and‑occupation surcharge on Washington taxable gross receipts above $250 million beginning Jan. 1, 2026, and raise the financial‑institution surcharge from 1.2% to 1.9% on July 1, 2025.
House Finance on April 3 heard testimony on HB 2045, a proposal to add a supplemental business‑and‑occupation (B&O) tax on the state’s highest‑grossing businesses and to increase an existing surcharge on specified financial institutions.
Committee staff and the bill’s sponsor told members the bill would impose a 1% surcharge on a business’ Washington taxable gross receipts above $250 million beginning Jan. 1, 2026, and increase the existing financial‑institution surcharge from 1.2% to 1.9% effective July 1, 2025. Committee staff also described exemptions in the draft language for manufacturing income and certain farmers and beekeepers; the bill would not apply the new 1% surcharge to income related to manufacturing activities.
Supporters framed the measure as a progressive revenue source to avoid cuts to education, childcare and health services. "These businesses benefit…
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