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Bill clarifies reversion B&O rate if newspaper exemption is lost
Summary
Senate Bill 5458 would clarify the business-and-occupation tax rate that applies to newspaper businesses if they are found ineligible for a total B&O exemption enacted last year; the bill designates 0.484% as the reversion rate.
A committee staff report and media-industry testimony explained that Senate Bill 5458 clarifies the tax rate that would apply if a newspaper business is found ineligible for the total B&O exemption enacted in 2023.
Jeff Mitchell, committee staff, said the 2023 law (Senate Bill 5199) created a 10-year total B&O exemption for qualifying newspaper businesses but left unclear what rate should apply if a business does not qualify. SB 5458 would specify that the 0.484% B&O rate applies in lieu of the higher general service rates.
Roland Thompson, representing Allied Daily Newspapers of Washington and the Washington Newspaper Publishers Association, said the earlier statute "slipped through" without a reversionary rate and that SB 5458 restores the historical 0.484% rate for businesses that do not qualify for the full exemption. Steve Ewing of the Department of Revenue supported the clarifying language as aiding administration and preventing surprise for a newspaper that loses eligibility.
The fiscal note indicates no anticipated revenue impact and a minimal expenditure impact (about $4,500) for the Department of Revenue. Public testimony concluded with agency and industry support on the clarification; the transcript records no committee vote during the hearing.
