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Published on Monday, November 13, 2017

Apportionment workgroup

The final workgroup created by EHB 2005 is a task force of city and business representatives to evaluate the two-factor apportionment formula for service-income for local B&O taxes and to recommend changes to RCW 35.102.130 by November 2018. The task force members have been discussing what does and does not work under the current model and have been learning about different methods for market-based tax apportionment models used in other state tax systems. The current apportionment method took effect in 2008 and both cities and businesses have found it difficult to administer the second factor of the allocation formula related to service income based on contacts with customers.

Categories: Budget & finance
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