Washington – Expiration of Temporary Rate Increase

SALT Report 2725 – The Washington Department of Revenue issued a reminder regarding the business and occupation tax rate decrease that took effect on July 1, 2013. On that date, the B&O tax rates for the following classifications decreased from 1.8% to 1.5%.

  • Service and other activities,
  • Gambling contests of chance, that are less than $50,000 a year, and
  • Real estate brokers taxable under RCW 82.04.255

In addition, the B&O tax rate for gambling contests of chance that are $50,000 a year or greater decreased from 1.93% to 1.63%.

However, the notice states that certain small businesses will continue to receive the 2010 small business B&O tax credit.  This applies to businesses that report under the following classifications:

  • Service and other activities
  • Gambling contests of chance, less than $50,000 a year classification
  • For profit hospitals
  • For profit research and development, including scientific R&D

For Further Information

Washington Department of Revenue – Notice