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Massive B&O Tax Hike Passes House

Massive B&O Tax Hike Passes House

April 22, 2025

NFIB issues Action Alert to members calling on Senate to reject HB 2081

The Washington House of Representatives waited until the wee hours of the morning, 1:30 a.m., April 22, to passive a massive Business & Occupations (B&O) tax increase that will affect every small business in Washington state.

The Senate Ways & Means Committee is now expected to vote on House Bill 2081 on Friday, April 25—two days before the scheduled end of session on April 27. This measure is moving fast.

Later in the morning of April 22, NFIB issued its second Action Alert to the membership on this issue, calling on them to let their state senator know of their opposition to HB 2081.

“Please oppose HB 2081, increasing business and occupation (B&O) tax rates and surcharges, unless our state’s smallest businesses are given some protection.

“The bill contains NO adjustment to the Small Business Tax Credit or filing threshold, but increases B&O rates on every small business in the state.

“Bipartisan House amendments to address this oversight failed because of tight deadlines that didn’t leave time to address Department of Revenue concerns.

“Without an amendment in Ways & Means to protect our state’s smallest businesses, like mine, I must ask you to oppose the bill.

“It is frustrating that the rapid pace of this legislation during the final week of session threatens small businesses with a significant tax hike, yet numerous other amendments addressing Big Business demands are moving forward.

If the Senate cannot find a way to protect firms qualifying for the Small Business Tax Credit, I urge you to vote NO on HB 2081.”

Members who did not receive their Action Alert, or may have misplaced it, are asked to copy the above text and pasted it into an email to their State Senator.

Time is critical. The Senate needs to hear from members now.

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