Finance Committee advances broad B&O tax package with amendments; committee votes 9-6 to report bill

The House Finance Committee on Saturday advanced a substitute version of House Bill 2,081, a sweeping package of changes to Washington’s Business & Occupation (B&O) tax code, by a 9-6 vote. Committee members adopted multiple amendments before voting to report the bill to the next stage with a "due pass" recommendation.

The bill as briefed by Tracy Taylor, staff to the committee, would raise B&O tax rates and add new surcharges for specified categories of businesses. Key elements described by staff include increasing the B&O rate to 0.5% for manufacturing, retail and wholesaling activities effective Jan. 1, 2027; raising B&O rates for services and other activities for businesses with gross receipts over $1,000,000 beginning Oct. 1, 2025; a 0.5% surcharge on taxpayers with Washington taxable income over $250,000,000 from Jan. 1, 2026, through Dec. 30,…