State Budget Plan Includes Tax Increase on Services

Among the patchwork of $800 million in tax increases passed by the Legislature is a temporary (theoretically) increase in the B&O tax on service businesses. For any business for which the current 1.5% B&O rate applies (including engineers architects attorneys and accountants) the rate will be 1.8% until June 30 2013. Other products hit with tax increases include non-microbrew beer bottled water cigarettes soda and candy. AGC opposed tax increases but they are expected to be signed into law by Gov. Gregoire.