Below is the text of an urgent email sent to the Washington House of Representatives in the final week of session asking them not to pass House Bill 2081. State Director Patrick Connor sent the email Monday, April 21. An Action Alert is also being sent to NFIB members asking for their help in reaching their lawmakers.

Honorable members of the Washington House of Representatives:

NFIB must oppose HB 2081, increasing the state’s business and occupation (B&O) tax rates and surcharges, unless some accommodation can be made to protect our state’s smallest businesses.

As we wrote Saturday, NFIB was disappointed to learn the bill contains NO adjustment to the Small Business Tax Credit or filing threshold, but would increase base B&O rates on every small business in the state.

We appreciate the bipartisan introduction of amendments from Reps. Leavitt and Orcutt seeking to correct that oversight. However, we have learned the Orcutt amendments may be ruled out of order due to scope and object. The Department of Revenue (DOR) has raised technical concerns about the Leavitt amendments, and wants a one-year delay in their implementation, which we fear will scuttle those proposals as well.

It is frustrating that the rapid pace of consideration of this legislation in the final week of session appears not to permit adequate time to make even modest changes to the Leavitt amendments that could address DOR’s concerns. Yet, numerous other amendments blunting the impact of the bill on larger businesses seem to be moving forward.

Regrettably, NFIB sees no alternative but to oppose HB 2081 in this situation.

We remain committed to working with interested House members to find a path forward that continues to protect firms qualifying for the Small Business Tax Credit.