OLYMPIA, Wash. — Washington small business owners would get a tax break under a state Senate proposal.
Senate Bill 5980 would eliminate the business and occupancy tax for businesses that make less than $125,000 in gross receipts.
Think “mom and pop” coffee shops and hair salons, said Sen. Christine Rolfes.
"It's people reinventing themselves after the pandemic. So, this seems like good pandemic relief and really good economic policy,” said Rolfes (D-Bainbridge Island).
Rolfes estimates the bill would result in about $50 million in tax relief for approximately 125,000 businesses in the state.
Hot Yoga Olympia would qualify, saving him about $100 a month, according to owner David Buscher.
His studio survived the pandemic, despite having to close for four months in 2020.
“We do hot yoga,” Buscher said. “So, it wasn’t the easiest to take it online.”
While he still limits the number of people in his studio, he credits his loyal clients for keeping the business open. He said any tax relief would help him continue to be there for his clients.
"That means I'd have a little bit extra every month to put away in case we need a major repair or if I had to replace something,” Buscher said.
Republican Sen. John Braun (R-Lewis County) supports the tax cut, but said it’s not nearly enough for a state facing a surplus in the billions of dollars. Braun said his party pushed for permanent cuts that would benefit everyone in the state.
"A significant rebate for gas tax over the next year, or as the House proposed, reduce the sales tax,” Braun said. “These are real tax relief effect, real Washingtonians across our state."
Rolfes said the state cannot afford to reduce the sales tax.