Monday, the Washington State Department of Revenue held its quarterly Business Advisory Council Meeting. WR is a long-time and active participant on the Council.
The council was formed by the Director of the Department of Revenue to better serve the business community by engaging and listening to the tax collectors and tax payers of the state.
Topics covered during the meeting included an update on the capital gains tax. The department’s rule writing efforts and the pending WA State Supreme Court challenge were of note. The court hears oral arguments on January 26, 2023 and the tax takes effect in April unless the court rules against allowing the tax. WR has long opposed the imposition and collection of a capital gains tax.
An update on the Tax Structure Work Group was given. The work group will be making recommendations to the legislature on several tax proposals. Additionally, it is anticipated that legislators will introduce tax measures that the work group did not move forward – such as the so called “wealth tax.” A Texas style franchise or margins tax will likely be considered, however no formal proposal has been released. The margins tax would replace the business and occupation tax. One big question is, what will cities do with their local B and O tax requirements.
Of interest to both retailers and consumers was the implementation of the new unclaimed property law. Previously, a person would have to request the state return to them any unclaimed property – such as from a bank account, gift certificate, or other item with a monetary value. With the new law in place the department will automatically send owners the money owed back to them without filing a claim. Going back to 2015 unclaimed property and moving forward, the state will begin issuing checks of $1,000.00 or less in February 2023 and continue such each quarter. Several other states have already or are considering similar model legislation.
WR looks forward to working with the Department of Revenue to ensure our state has an understandable, fair, and equitable tax system.
