Evergreen Reporter

The National Federation of Independent Business (NFIB) has expressed its opposition to House Bill 2081, which proposes increased business and occupation (B&O) tax rates and surcharges in Washington. The opposition was conveyed in an email sent to the Washington House of Representatives by State Director Patrick Connor on Monday, April 21, 2025. An Action Alert was also distributed to NFIB members to encourage them to communicate with their lawmakers.

The NFIB's primary concern with HB 2081 is the lack of adjustments to the Small Business Tax Credit and the filing threshold. Connor stated, "NFIB must oppose HB 2081, increasing the state’s business and occupation (B&O) tax rates and surcharges, unless some accommodation can be made to protect our state’s smallest businesses."

Efforts have been made by Reps. Leavitt and Orcutt to amend the bill to address these concerns. However, Connor noted challenges, saying, "We have learned the Orcutt amendments may be ruled out of order due to scope and object. The Department of Revenue (DOR) has raised technical concerns about the Leavitt amendments, and wants a one-year delay in their implementation, which we fear will scuttle those proposals as well."

Connor expressed frustration over the pace of the legislative process, indicating it does not allow sufficient time for necessary amendments. He noted, "Numerous other amendments blunting the impact of the bill on larger businesses seem to be moving forward."

Finally, the NFIB reaffirmed its willingness to collaborate with interested House members to find a resolution that protects businesses qualifying for the Small Business Tax Credit.