State officials seeking ways to simplify the tax code for small business
How do you feel about the state’s tax code?
If your response is that it’s too confusing, too much of a burden or requires too much paperwork, you aren’t alone.
In fact, state leaders are right there with you.
In an effort to simplify the tax code and reduce administrative burdens on businesses, the Department of Revenue has launched the “Tax Simplification Project” – a new online survey that’s part of a larger effort started by Governor Chris Gregoire.
In November, Gregoire appointed Suzan DelBene to revenue director, asking for recommendations in simplifying the tax code and reducing administrative burdens on businesses. At the time, Gregoire said DelBene’s knowledge of the tax system was one of the reasons she was named to the post.
“Suzan knows firsthand how the tax system impacts businesses and possesses the skills and vision to lead the agency through this transformation,” Gregoire said in a release.
DelBene said the benefits of simplifying the state’s tax code will be felt from Vancouver to Bellingham and everywhere in between.
“I know how businesses work and what government can do to help lay a strong foundation for the private sector,” said DelBene. “Simplifying the tax code and reducing administrative burdens will save small businesses money and time and let owners and employees focus less on paperwork and more on how to operate in this tough economy. This will help small businesses in all of our communities and improve our entire state’s competitiveness.”
Here are just a few items the simplification project’s website points to:
• Washington is one of only two states with a gross receipts business tax.
• Washington has more than 50 different state business and occupation (B&O) tax classifications that businesses report under, depending on their business activities.
• We have at least 39 cities in the state that impose their own B&O taxes with variations in rates, exemptions, deductions and thresholds.
• Washington's retail sales tax system is composed of a state rate of 6.5 percent and differing local rates administered through the use of over 300 distinct location codes.
The survey can be found at
dor.wa.gov/TaxSimplification. The Revenue Department is presenting its recommendations to Gregoire at the end of June.
