taxation[1]

TAXATIONCurrent Issues

2010 Tax LegislationRetail sales tax -Candy and gum sales tax exemption

repealed; B&O jobs credit -Bottled water exemption repealed -Reseller permit administration -Digital products taxation -Use of certain local sales tax -Public facilities district (PFD) multiple

jurisdiction

Retail sales tax (continued)

-Durable medical equipment, sales tax covered in purchases by insurance companies

-Wax and ceramic materials sales tax exemption

-City annexations and RTA -Cities and counties local excise tax provisions -Livestock nutrient exemption suspension -Corporate officer liability for tax debts -Bad debt deduction limitations

B&O tax -Temporary B&O tax increase -Economic nexus -Bonneville Power Administration payments to public

utility districts B&O tax exemption -Main Street Program transferred to Arch & Historic

Preservation -Direct sellers B&O tax exemption repealed -Property management salary exemption repeal -Processing meat, fruit, or vegetable tax preferences -Mortgage ruling -Corporate board of director fees -Vaccine association B&O tax exemption

Property tax

-Property tax exemption -County treasurers allowed to use electronic

billing and payment for property taxes and other fees

-Air ambulance aircraft property and aircraft excise tax exemption

-Community centers property tax exemption -Fire protection districts annexations -School levies

Incentives -Extension of expiring tax incentives -Aluminum smelter  - continuation of tax incentives -Data center tax exemption -Tax incentives reports and surveys extension of

due dates -Renewable energy system cost recovery incentive -Alternative fuel vehicles sales tax exemption

extension -Distressed county sales and use tax deferral

program

Forest tax

-Timber purchase reporting requirements

-Forest tax – ministerial amendments

Miscellaneous -Carbonated beverage tax -Convention center -Cigarette and other tobacco products -Impact fees for high density urban

development allowed by local government -Subpoena power for Department of Revenue -Confidential taxpayer records – JLARC

access -Fire protection facilities impact fees -Unclaimed property locating fees

Misc. Cont’d -Lemon law extension -Vehicle license fraud -Intellectually disabled -Small business compliance -Funding distribution formulas for K-12 distribution -Water sewer districts – city taxes -Airport property authorized to lease at less than

fair market value -Consolidating management of state agencies’

technology

Misc. Cont’d -Gender references corrected -Community facilities districts -Public records requests available online -Public records requests available online -Estates and trusts -State and local tax administration –

improvements -Tax reporting survey provisions - creating

uniform reporting requirements -Tax avoidance

Misc. Cont’d -Enhanced 911 tax extended -Sea urchin and cucumber tax rates

changed -Temporarily increasing beer taxes -Working family tax credit -Public utilities district (PUD) privilege

tax clarification

INITIATIVE 1107 Repeals the temporary sales tax on

soda and bottled water, and would permanently extend the sales tax to candy and gum.

INITIATIVE 1098 Exempt every small business in

Washington from the B&O tax with a $4,800 business tax credit

Reduce the state portion of the property tax by 20 percent, saving typical homeowners $100 to $200 per year

Create a 5% tax on income over $200,000 singles/$400,000 couples, and 9% on income over $500,000 singles/$1 million couples)

I-1098 Cont’d Invest the net revenue, estimated at

over $2 billion per year in public education and health care

Impose strict accountability and transparency requirements.