Published by Washington Research Council
By: Emily Makings
April 18, 2025
PSSB 5815 and PSHB 2081 would increase business and occupation (B&O) taxes. The bills include a temporary surcharge and permanent rate increases. According to the draft fiscal note, the proposal would increase revenues to funds subject to the outlook (NGFO) by $2.442 billion in 2025–27 and by $3.943 billion in 2027–29 (the first biennium it would be fully effective).
The March 2025 revenue forecast estimates that B&O revenues will total $14.874 billion in 2025–27 and $16.319 billion in 2027–29. Thus, the B&O tax proposal would increase B&O revenues over the forecast by 16.4% in 2025–27 and by 24.2% in 2027–29.
Of course, businesses also pay sales and property taxes. SB 5814 and HB 2083 would apply the sales tax to more services. SB 5812 and HB 2049 would increase the property tax growth limit.
Businesses in Washington already pay about half of all state and local taxes, and per-employee taxes paid by Washington businesses rank 10th highest in the country.
