Two proposals by State Representative Derek Kilmer (D – Gig Harbor), which aim to help small businesses in Washington, won approval from both Democratic and Republican members of the House Economic Development, Agriculture and Trade Committee.

Both bills – HB 1351 and HB1442 - would provide Business & Occupation (B&O) tax relief to small businesses in Washington.

HB 1351 provides a tax credit for small businesses for every new job they create that pays a livable wage and provides health benefits.

HB 1442 would relieve the initial tax burden on small businesses, doubling the current exemption from B&O tax.

Because the B&O tax is levied on gross receipts, it can occasionally deter investment by start-ups and other small business. “Communities in Pierce and Kitsap Counties are very reliant on the success of our small businesses,” Kilmer explained. “This is a way to help them grow and succeed.”

Kilmer was pleased to receive bi-partisan support for the bills, both of them receiving near-unanimous approval in the committee. Several local employers submitted testimony in support of these bills, as well as the Bremerton Chamber of Commerce, whose board endorsed the proposals.

Kilmer is hopeful he can get the bills passed but knows it’s an uphill battle. The bills will next go before one of the two fiscal committees in the House, where any potential loss of revenue may face further scrutiny due to the state’s $2.2 billion shortfall.