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Pointing out that small businesses employ a large percentage of the state’s workers, state Rep. Bill Eickmeyer (D-Belfair) is prime-sponsoring legislation establishing a tax break for “this backbone of our economy.”
“These are the Main Street and the side-street stores and companies that keep our towns and communities going,” said Eickmeyer.
Eickmeyer’s measure, House Bill 1171, would exempt a qualified small business from the business and occupation (B&O) tax. The exemption would apply for businesses that have a gross income from sales or services of less than $200,000 for a specified base-period of time.
“One of the most frustrating aspects of the B&O tax system in Washington is its refusal to take into account the profitability — or lack of profitability — of a business,” Eickmeyer noted.
In addition to the gross-proceeds limit, among other qualifications, a participating business must have paid the B&O taxes during the 12-month base-period that exceeded the net income of the business on its federal income-tax returns for the same period of time.
Although they employ half the workers in the private sector, according to the U.S. Small Business Administration, small businesses actually employ 99 percent of the employees. Also unlike their larger cousins, small businesses are located in most every American neighborhood.
Eickmeyer’s legislation is now awaiting action in the House Community and Economic Development & Trade. | 
