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WAC 104 Small business tax relief based on income of business.          
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION  
         
WAC: 458-20-104 11/12/10 Small business tax relief based on income of business Rule 104 explains how the business and occupation (B&O) tax credit for small businesses, commonly referred to as the small business credit (SBC), is calculated. It also explains the public utility tax (PUT) income exemption for public utilities. 

The rule was amended to recognize the provisions of Chapter 23, section 1102, Laws of 2010, 1st special session, (2ESSB 6143).  This legislation increased the small business B&O tax credit to a maximum of $70 per month, but only for taxpayers whose B&O taxable amounts from activities taxable under RCWs 82.04.255 (Real estate brokers), 82.04.290(2)(a) (Service and other activities), and 82.04.285 (Contests of chance) add up to 50% or greater of the total of all B&O taxable amounts reported on the return.

 
  458-20-104 04/01/10 WAC 458-20-104 explains the small business B&O tax credit. These rules are being amended for the sole purpose of implementing E2SB 5688 (chapter 521, Laws of 2009).  E2SB 5688 requires agencies to "amend their rules to reflect the intent of the legislature to ensure that all privileges, immunities, rights, benefits, or responsibilities granted or imposed by statute to an individual because that individual is or was a spouse in a marital relationship are granted or imposed on equivalent terms to an individual because that individual is or was in a state registered domestic partnership."
 
  458-20-104   03/17/1995 Small business tax relief based on volume of business. Effective 4/17/95. Updated 8/27/98.  
           
         
RCW: 82.16.040   1961 Exemptions.  
  82.04.4451   1997 Credit against tax due - Maximum credit - Table  
         
ETA:        
           
         
INDUSTRY GUIDES:        
           
         
SPECIAL NOTICES:        
Subject Title Reference:        
Small Business Credit   06/19/1998 Rule Change on the Small Business Credit for Businesses with Multiple Accounts - as of July 1998  
Firewood Sellers   04/01/2002 Firewood Sellers  
B&O Tax 04/28/10 Temporary B&O Tax Rate Increase Small Business Credit Increase Active Non-Reporting Change  
         
DIRECTIVE: None        
           
         
RPM: None        
           
         
WTD: 2 WTD 29 86-298   B&O TAXES -- EXEMPTIONS -- MINIMUM GROSS. The Revenue Act excludes those businesses with incomes totaling less than $1,000 per month.  
  5 WTD 217 88-159   B&O EXEMPTION -- MONTHLY MINIMUM -- MINIMUM TAXABLE AMOUNT --  HUSBAND AND WIFE -- "PERSON" -- DEFINITION. If a husband and wife have separate businesses, with separate registration numbers, each business is a separate "person" for purposes of the B&O minimum exemption. REVERSES PRIOR DEPARTMENT POLICY.  
  5 WTD 217 88-159   REGISTRATION TO DO BUSINESS -- HUSBAND AND WIFE -- COMMUNITY PROPERTY -- LIABILITY -- TAX DEBT. The finding that a husband and wife are each entitled to file returns for separate businesses does not necessarily require the conclusion that the separate businesses are also separate property for purposes of liability for tax debts. F.I.D.  
  5 WTD 233 88-162   B&O EXEMPTION -- MONTHLY MINIMUM -- MINIMUM TAXABLE AMOUNT -- HUSBAND AND WIFE -- "PERSON" -- DEFINITION. If a husband and wife have separate businesses, with separate registration numbers, each business is a separate "person" for purposes of the B&O minimum exemption. Det. 88-159, ___ WTD ___ (1988).  
  5 WTD 233 88-162   REGISTRATION TO DO BUSINESS -- HUSBAND AND WIFE -- COMMUNITY PROPERTY -- LIABILITY -- TAX DEBT. The finding that a husband and wife are each entitled to file returns for separate businesses does not necessarily require the conclusion that the separate businesses are also separate property for purposes of liability for tax debts.  
  14 WTD 77 93-322   B&O TAX -- EXEMPTION -- MONTHLY MINIMUM -- MINIMUM TAXABLE AMOUNT -- HUSBAND AND WIFE -- "PERSON" DEFINED -- MARITAL COMMUNITY. A marital community is not defined as a person. If a husband and wife have separate businesses, with separate registration numbers, each business is a separate "person" for purposes of the B&O tax minimum taxable amount exemption.  
  14 WTD 210 94-047   MONTHLY OR YEARLY EXEMPTION -- MULTIPLE BUSINESS ACTIVITIES. Where the income from a taxpayer's combined business activities exceeds the monthly or yearly gross exemption, no exemption based on the monthly or yearly exemption is allowed.  
                   
         
OTHER: