Washington Group Endorses Margin Tax to Replace Business Tax

Washington state should replace its business and occupations tax levied on income since the 1930s with a margin tax levied on gross receipts, a bipartisan advisory group said Tuesday.

The recommendation from the Tax Structure Work Group makes it likely that lawmakers will consider enacting the change during the 2023 legislative session, its members said. The group’s lawmakers voted 6-1 to offer outlines for a new margin tax but expects lawmakers to hammer out the details.

Washington’s business and occupation tax is universally criticized as unfair to small businesses, startup companies, and businesses with small profit margins ...