Read the Automakers’ Suit Against Bremerton

If you read the story or the blog entry about the automakers’ lawsuit against Bremerton, you may remember that the attorney representing the manufacturers had no comment.

You can, however, read the lawsuit here (PDF file). It’s eight pages.

One of the commenters on the story, Michael, calls what Bremerton wants “double taxation.” The city would collect twice on a car sale, once on the wholesale transaction and again when the dealer sells it retail. Then there’s sales tax, making it more than double. That’s true on more than auto sales. Any company doing business in Bremerton, be it a company that sells to other businesses or as a retail outlet, is subject to the B&O tax, because it’s a tax on revenues.

The city has decided it doesn’t like collecting the tax and that it’s a hindrance for businesses, so it’s working on phasing it out.

From the story:

The entire issue could be moot in the future if Bremerton is successful in eventually eliminating its B&O tax. The City Council agreed to raise the exemption for businesses paying the tax for the past two years. The city formerly exempted companies that saw less than $20,000 gross revenue, but it taxed all the gross revenues once they exceeded that level. In December 2006, the council agreed to raise the exemption level and change it to what Lyon called a “true exemption.” This year businesses don’t pay B&O tax to the city on the first $40,000 in revenues. In 2008 the exemption will increase to $60,000.

In the mayor’s November newsletter he writes, “The goal of the City is to totally eliminate the B&O tax in the next few years.”

One thought on “Read the Automakers’ Suit Against Bremerton

  1. Too bad for the auto company. If the City of Bremerton has the gumption, time, and money, the City of Tacoma has a case like this ruled in their favor with the 9th Circut. Expect it to go to the US Supreme Court eventually. I believe it is Ford v. City of Tacoma.

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