State's Tax Simplification Report Released Print E-mail
taxGoal was to gain input to help create a simpler tax process for businesses.

The Washington Department of Revenue released its findings from its Tax Simplification Report this week, which shows both small businesses and municipalities want a simpler form of reporting.

Among the findings were that small businesses struggle with B&O tax reporting. This is due to small businesses having to report to multiple cities that impose a B&O tax. The state also has 51 B&O tax classifications, compounding the difficulties.

Local municipalities also voiced opinions and wanted any solutions to be revenue neutral and allow for flexibility when it comes to setting tax rates and determining deductions, credits and exemptions.

Governor Christine Gregoire issued Executive Order 10-05 instructing the Department of Revenue to find ways to simplify the tax reporting process. Representatives from the state traveled around the state, conducting personal interviews, seminars and surveys.

To read the entire report, click here.