Positive news today! With complete bipartisan support, the Washington State House and Senate have both unanimously approved House Bill 1095, exempting all government or government-funded programs related to the pandemic emergency from the State’s Business and Occupation (B&O) tax. Some examples:
HB1095 is now headed to Governor Inslee’s desk where it is expected to be signed promptly.
If you have reported any of these amounts as taxable income in your B&O filings, you should consider an amended filing to receive a refund of overpaid taxes.
Important reminder, just as with any amounts that you deposit into your business account, be sure to retain your documentation related to these grants. If your business is audited by the Department of Revenue, you will still need to show proof that these amounts were from grants and not from sales to customers.
Click here to view the complete bill.
We are especially pleased about this news for many reasons. First, it is the right thing and is consistent with the purpose of these grants – to allow businesses to use these funds for payroll, rent and other operating expenses, rather than having to incur the additional overhead of a B&O tax. Second, the energy behind this bill began with a phone call between one of our firm’s Principals and the lead sponsor of the bill, Representative Amy Walen.
If you have questions on how this will effect you, we are here for you! Contact us below or call 425.629.1990.