Topics:
February 14, 2023
Should a Margins Tax Replace State’s B&O?
- No tax owed or tax returns required for businesses with gross receipts up to $500,000.
- All businesses may elect to take a flat $1 million deduction and pay tax on any revenue above that amount. (This means that businesses earning $1 million or less would not pay the tax, although a tax return would be still need to be filed.)
- Instead of the $1 million deduction, businesses could choose any one of the following deductions:– A standard 30% deduction. Tax would be due on the remaining 70% of gross revenue. — Deduct the cost of goods sold. Tax would apply to the remainder. — Deduct compensation costs, capped at $400,000 per employee. Tax would apply to the remainder.
- Firms earning less than $5 million could instead elect to file and pay an “EZ rate” of 1.75% of gross with no other deductions.

State:
Get to know NFIB
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
Related Articles

February 8, 2025
Minimum Wage Bills Coming Up for First Hearings
Small Business Legislative Update — Week 4
Read More

February 7, 2025
Inclement Weather Doesn’t Stop NFIB’s Small Business Day
Event succeeds again in getting members informed and involved
Read More

February 6, 2025
Washington Comment on Latest NFIB Jobs Report
Legislature not helping matters by making the cost of labor higher
Read More

February 6, 2025
Budget Provision Extending the Standard Deduction Would Help VA…
Without legislative action, the standard deduction could revert to 2018 lev…
Read More