SMALL BUSINESS B&O TAX CREDIT AND FILING THRESHOLD
Beginning with tax periods starting on or after January 1, 2023, this bill increases the small business B&O tax credit as follows:
- For taxpayers that report at least 50% of their taxable amount as subject to business and occupation tax under the Service and Other Activities classification including those subject to tax on contests of change and/or tax on real estate brokers the maximum credit for a reporting period is $160 multiplied by the number of months in the reporting period, as determined under RCW 82.32.045.
- For all others, the maximum credit for a reporting period is $55 multiplied by the number of months in the reporting period.
The bill also increases the threshold for filing returns to $125,000 per year for all taxpayers that do not have other taxes to report to the department.
Credit and threshold effective January 1, 2023 (ESSB 5980, Chapter 295 Laws of 2022).
Special notice coming soon.
