Tax Package Overview - Senate Bill 6143 Description Effective 2009-11 | 2011-13 Notes Date ($in millions) (0.30% B&O tax increase on all services S/O $483.1 [Includes permanent doubling of small lexcept hospitals, scientficresearch and [business B&O credit and increase in [development (expires June 30, 2013) Ieporting threshold for service business from '$28,000 to $46,667. [B&O tax increase on direat sellers S/O $155.0 $199.4 [Dot Foods Court Case: Complete repeal of |exemption as of Mey I, 2010 [Cigarette and other tobacco tax increases S/O s1014 S19TS [SI per pack for cigarettes, OTP from 75% to [CHB 2493) [95% of wholesale price, 65 cent cap for cigars, weight-based tax for moist snuff. [B&O tax on economic income e/illo S847 $407.3 | Changes standard for applying B&O taxes from physical presence to economic Ipresence. B&O deduction for aircraft loans (Alaska Airlines). [Beer tax increase ~50 cents per gallon @8 | 6/1/10 3590 STI810 _ [Exempts microbrews (60,000 barrels or less |cents per six pack) per year); [Sales tax on bottled water erinlo 3328 $692 [Provides a refund for tax paid on [prescriptions and those without an available [source of potable water. [Soda pop tax increase —2 cents per 12 TANO 3335 $724 |Exempts carbonated bottled water. Exempts lounces first $10 million of carbonsted beverage sales [Sales tax on candy and gum e/illo 3305 $624 includes $1,900 B&O tax credit for in-state [candy manufacturers until July 2012; [Department of Revenue (DOR) must compile a list of candy that is taxable and not taxable, [Taxes on business structure transactions S/ANO 385 $304 |Gives DOR authority to disregard certain [business transactions or arrangements; creates legisiative commitice to monitor {implementation. [B&O tax increase on property management | 6/1/10 369 S148 |Exempts non-profit property management salaries [companies and private companies that lcontract with public housing authorities. [B&O tax increase on certain canned meat e/illo S41 ‘S88 [Applies to canned meats, such as chili, soups, [products (irom 0.138% to 0.4846) land certain canned fruits and vegetables [B&O tax increase on mortgages e/inlO 336 S79___ [Narrows definition of what can be deducted [B&O tax on corporate officer salaries TAO S21 S46 |Applics 18% BAO tax rate to corporate [board of director income. [Tax increase on bad debts SAO 37 ‘S41 |Limits deduction for uncollectable sales taxes lonly tothe seller. Livestock nutrient management ax inerease [7/1/10 S13 ‘S28 |Repeals sales tax exemption until Tune 30, 2013, [PUD clectri bills ix increase S/NO S12 ‘$22 [Directly affects Clark and Grays Harbor PUDs. [Personal liability for tax debts S/O Sr ‘$20 [Expands number of corporate officers [personally liable for unpaid sales taxes. [Additional lottery marketing (SB 6409) TBO S150 [Assumes aggressive marketing of lottery for Ihigher educetion will generate more money. Washington State Convention and Trade 6730111 S100 [Convention center pays state yearly for hotel |Center hotel tax payment (SB 6889) hax credit against general fund. Not a tax increase, but shown as revenue on balance sheet. TOTAL $794.1 | $1,687.2