\u201cKeep it simple.\u201d This old saying is more than a bumper sticker slogan, it\u2019s a principle that is especially important when it comes to taxes and regulations.<\/p>\n<\/p>\n
Washington employers have been working for decades to simplify our state\u2019s tax and regulatory policies. Currently, employers must work their way through a maze of complex, overlapping and often contradictory regulations and tax rules that differ from one city to the next, one county to the next.<\/p>\n<\/p>\n
It\u2019s like playing a game that has 50 different sets of rules.<\/p>\n<\/p>\n
Wrestling with those costly and cumbersome requirements means employers \u2014 particularly small employers \u2014 spend time and money on paperwork that could be better spent creating jobs.<\/p>\n<\/p>\n
That\u2019s why Gov. Gregoire is supporting tax simplification legislation. The governor wants to make it easier for all businesses, especially small businesses, to calculate and pay their Business and Occupation (B&O) taxes.<\/p>\n<\/p>\n
B&O taxes are assessed on a business\u2019 gross income, regardless of profit. The state imposes a B&O tax, but local jurisdictions do as well. The amount of the local B&O taxes, as well as how they\u2019re calculated, varies from one jurisdiction to the next.<\/p>\n<\/p>\n
Gregoire describes the situation this way:\u00a0 \u201cFor Washington businesses, especially small business owners who operate with little help, paying state and local B&O taxes is at best complicated and at worse a nightmare.\u201d<\/p>\n<\/p>\n
Under the governor\u2019s proposal, the state of Washington would be the single collector of all local and state B&O taxes, and the state would rebate to each local jurisdiction their share of the tax \u2014 similar to how the state currently handles state and local sales taxes.<\/p>\n<\/p>\n
The governor also wants to create a central state website where people could apply for or renew state and local business licenses, eliminating the need for similar websites currently operated in more than 50 cities around the state.<\/p>\n<\/p>\n
\u201cIt will save businesses money and aggravation, reduce state and local government red tape and make Washington a friendlier place to set up a business,\u201d notes Gregoire.<\/p>\n<\/p>\n
But some of the state\u2019s largest cities are pushing back against the governor\u2019s proposal, saying they\u2019ll lose millions if tax simplification becomes law.<\/p>\n<\/p>\n
Seattle authorities say the city could lose between $23 million and $44 million a year. Tacoma officials estimate their city will lose $4 to $7 million a year. Critics say cities will lose out on millions in tax penalties and interest \u2014 money that would now go to the state \u2014 and city officials fear that state auditors will not be as aggressive in pursuing tax cheats.<\/p>\n<\/p>\n
Seattle, Bellevue, Tacoma, Everett and Bellingham say they\u2019re already working on a plan to simplify local tax payments, and lawmakers should wait to see how their project works before passing the governor\u2019s plan.<\/p>\n<\/p>\n
Gregoire rejects the cities\u2019 criticisms. Noting that the state currently collects and rebates local sales taxes, the governor said, \u201cThese horror stories of how they\u2019re losing money? No they\u2019re not. We will give it back. I think it\u2019s the right thing to do for the small businesses of the state of Washington.\u201d<\/p>\n<\/p>\n
Gregoire points out that 95 percent of Washington employers are small businesses with fewer than 50 workers. \u201cIf we can make it easier and cheaper for them to do business,\u201d explained the governor, \u201cthey can afford to add more employees.\u201d<\/p>\n<\/p>\n
\u201cIf we ever need a reform that helps business,\u201d says Gregoire, \u201cthis is it.\u201d<\/p>\n<\/p>\n
\u00a0<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"
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