House Finance committee advances B&O tax cut for critical‑access pharmacies after amendment
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Summary
The House Finance Committee voted 8–6 to report engrossed Senate Bill 6228 out of committee with an amendment that lowers the preferential B&O rate for critical‑access pharmacies to 0.138%. Supporters said the change responds to testimony that prior offsets were insufficient; opponents said the bill raises taxes overall.
The House Finance Committee on Saturday reported engrossed Senate Bill 6228 out of committee with a ‘do pass as amended’ recommendation after approving amendment CRING 174, 8–6.
Christina King, staff to the committee, summarized that ESB 6228 would repeal the preferential business & occupation tax rate for warehousing and reselling prescription drugs and establish a preferential B&O rate for critical‑access pharmacies. The amendment offered by Representative Bridal (CRING 174) changes the preferential rate for critical‑access pharmacies from 0.25% to 0.138%.
Why it matters: Committee members said the change targets pharmacies that are the only local supplier in their communities and aims to preserve local pharmacy access while balancing revenue needs. Representative Rammell said testimony from affected pharmacies showed the original offset did not sufficiently cover losses and urged members to support the amendment.
Opponents voiced concern about the bill’s broader fiscal effects. Representative Orcutt said the amendment lowers the tax rate “for some of the taxpayers” and recommended a yes on the amendment, but elsewhere she and other opponents framed the overall package as a net tax increase that could fall on consumers or businesses.
The committee recorded the roll: Berg (aye); Street (aye); Orcutt (nay); Jacobson (nay); Abel (excused); Chase (nay); Mena (aye); Penner (nay); Rammell (aye); Santos (aye); Scott (aye); Springer (nay); Wallen (nay); Wiley (aye); Zahn (aye). Staff announced 8 ayes, 6 nays and 1 excused; the adopted amendment was ordered incorporated into the engrossed bill and the committee reported ESB 6228 out with a ‘do pass as amended’ recommendation.
What’s next: Reporting the bill out of committee advances it to the next floor or calendar step in the Legislature; the transcript did not record a floor vote or enactment schedule.
Sources: Committee briefing by Christina King, staff to the committee; amendment moved by Representative Bridal; motions and roll call recorded in committee proceedings.