This report makes for interesting reading. As you know,
Bremerton and Bainbridge Island have local B&O taxes. The
upcoming Legislature will consider the recommendation in this new
report from the Department of Revenue, and a revamp of the way the
B&O is collected could be in effect as soon as 2012, says a
spokesman from the Department of Revenue. The following is a recent
news release from Revenue.
OLYMPIA – June 29, 2011 – Centralizing the collection of state
and local business and occupation taxes is a key recommendation of
a Tax Simplification Report sent to Governor Chris Gregoire
The report stems from the Governor’s October 2010 executive
order directing the Department of Revenue to examine ways to reduce
the complexity of state and local tax systems.
The Department based the report on a series of meetings with
small businesses, local governments, tax experts, and other
Currently, the Department administers the state business and
occupation (B&O) tax and at least 39 cities administer their
own local B&O taxes.
Businesses expressed strong interest in consolidating the
administration of state and local business taxes so they only have
to file one return instead of dozens, often with differing
definitions and requirements.
Revenue Director Suzan DelBene said small businesses struggle to
understand which state and local agencies they must deal with as
they navigate a complex maze of tax reporting requirements.
“By centralizing administration of tax reporting, Washington can
relieve a significant burden for small business owners, freeing
them to get back to the work of running their businesses,” DelBene
The full report is available at