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NFIB Making Media Noise About State Tax Increases

NFIB Making Media Noise About State Tax Increases

September 30, 2025

State Director Patrick Connor speaks out about the new October 1 levies

The Washington Legislature this year passed the largest tax increase in state history, which NFIB details in this web story. The media throughout the state wanted to know more and called on State Director Patrick Connor to give small businesses’ perspective. Below are a sample of some of the recent interviews Connor has given on the tax increases, which took effect October 1.

The Bellingham Herald, September 29—“An increased business and occupation tax on ‘specified financial institutions’ and service businesses with an annual gross income over $5 million also will go into effect this week. A business and occupation tax is on a business’s gross revenue, not on profits. But as the new sales tax laws take effect, some say customers should anticipate an adjustment period as businesses collect sales taxes for the first time. Patrick Connor, Washington state director for the National Federation of Independent Business, said in an interview that businesses that didn’t previously charge the sales tax will need to get caught up on the ins and outs of calculating and remitting the tax. “There’s a deep unfairness there and an inequity in how the tax is going to apply. If your kid goes to a high school that still has a driver’s ed course, then there’s no tax. If your school doesn’t offer it and you have to go to the local driving school, now it’s going to cost that family 10% more.’” Full article here.

The Spokesman-Review, September 28—“Patrick Connor, Washington state director for the National Federation of Independent Business, said in an interview that businesses that didn’t previously charge the sales tax will need to get caught up on the ins and outs of calculating and remitting the tax. ‘There’s likely to be a learning curve in addition to having to field calls from angry customers suddenly having to pay 10% because sales tax has been added to an existing contract,’” Connor said. Full article here.

KXLY-TV 4News Spokane, September 22—“’We’ve had several folks communicate to us that they’re looking at early retirement or perhaps moving out of state,’ said Patrick Connor, state director for the National Federation for Independent Business.” NFIB member Megz White also comments in the video clip. “I have so many friends that own different, various small businesses that are just hopping across the border to Idaho because it’s cheaper to operate their businesses there because there is less taxes and more business friendly.” Full video here.

unDivided with Brandi Kruse, September 22—“Main Street is still trying desperately to recover from the impacts of the pandemic, supply chain disruptions, unavailability of a sufficient workforce, and adding a $9.5 billion tax burden on top of an already difficult situations is going to make it worse … There will be small businesses that pull up stakes or simply close the doors and stop offering products, services, and jobs in their communities.” Full video here.

The Center Square, September 9—“’While small business optimism is rebounding nationally, Washington state Main Street entrepreneurs are bracing themselves for the impact of the largest tax increase in state history, which takes effect next month,’ said State Director Patrick Connor in a story published by the online news site.

“’Several services will now be subject to sales tax, and Business & Occupation (B&O) tax hikes and surcharges will affect nearly every industry, so consumers may soon see prices at the register begin to rise again. NFIB is calling on lawmakers in Olympia to work with us on meaningful adjustments to the Small Business Tax Credit to stave off some of the worst impacts of this tax package on our smallest local businesses.’”

The Center Square story also ran on the websites of its subscribing media, the Columbia Basin Herald, The Chronicle, Nisqually Valley News, The Reflector,  NewsTalk KFLD 870AM, Newsradio 610 KONA, and Yahoo Finance.

 

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