- Washington Governor signed two bills introducing major tax reforms on 20 May 2025
- Changes include adjustments to the Business and Occupation tax and extension of retail sales tax to computer-related services
- Uniform B&O rate set at 0.5 percent for manufacturers, retailers, extractors, and wholesale sales effective 1 January 2027
- High-income B&O surcharge of 0.5 percent for businesses with taxable income over USD 250 million starting 1 January 2026
- Financial institutions B&O surcharge increases from 1.2 percent to 1.5 percent effective 1 October 2025
- Advanced computing surcharge increases from 1.22 percent to 7.5 percent with annual cap rising to USD 75 million effective 1 January 2026
- Gaming operations B&O rate increases from 1.5 percent to 1.8 percent effective 1 January 2027
- New progressive B&O tax rates based on gross income of entire affiliated group effective 1 October 2025
- Rates are 1.5 percent for groups with income under USD 1 million or paying advanced computing surcharge, 1.75 percent for income between USD 1 million and USD 5 million, and 2.1 percent for income over USD 5 million
- Bill SB 5814 extends retail sales tax to computer-related services and removes exemptions for digital automated services effective 1 October 2025
- Affected services include IT training, technical support, advertising, custom website development, search engine marketing, and additional services
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
