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Senate Bill Report — SB 5541, Exempting Newspapers from Business and Occupation Tax (January 20, 2022)

Summary

A Senate Bill Report on SB 5541, as of January 20, 2022, an act exempting newspapers from business and occupation tax, with Senators Mullet, Gildon, Keiser, Liias and Lovick listed as sponsors. The bill provides that the B&O tax does not apply to any person engaging within the state of Washington in the business of printing a newspaper, publishing a newspaper, or both. The background section states that businesses that print or publish newspapers are subject to a 0.35 percent B&O tax under current statute and that this tax preference is set to expire July 1, 2024. The report lists a fiscal note as available and an effective date of July 1, 2022. The persons testifying in favor include Senator Mark Mullet, Prime Sponsor, and Rowland Thompson of Allied Daily Newspapers of Washington.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2022-01-25
Case
2022 01 25 A29562 D238870 Bill Report 5541 Sbr Bfst Ta 22

Cite this document

“Senate Bill Report — SB 5541, Exempting Newspapers from Business and Occupation Tax (January 20, 2022).” Original at app.leg.wa.gov, dated 2022-01-25. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-01-25-2022-01-25-a29562-d238870-bill-report-5541-sbr-bfst-ta-22/, SHA-256 0cfd512e490c4dc537f93e716623ae4f08ce1fa00771921fa0168ea957cb67dd.

Full text

                            SENATE BILL REPORT
                                  SB 5541

                                      As of January 20, 2022

Title: An act relating to exempting newspapers from business and occupation tax.

Brief Description: Exempting newspapers from business and occupation tax.

Sponsors: Senators Mullet, Gildon, Keiser, Liias and Lovick.

Brief History:
     Committee Activity: Business, Financial Services & Trade: 1/20/22.


                                     Brief Summary of Bill
           • Exempts newspapers from having to pay the business and occupation
             tax.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

     Staff: Clinton McCarthy (786-7319)

     Background: In 2008 and again in 2012, the Legislature temporarily revised the definition
     of newspaper to include electronic versions of newspapers. The effect of this is that both
     the online version of a newspaper and the physical version of a newspaper are taxed at the
     business & occupation (B&O) rate of 0.35 percent until July 1, 2015. If the electronic
     version of a newspaper is not included in the definition of a newspaper, the B&O tax will
     apply to the electronic version based on the revenue-generating activity. For advertising
     revenues the rate of 1.5 percent would apply, and for subscription sales the rate of 0.471
     percent would apply. In 2015, the Legislature clarified that the electronic version of a
     newspaper is a supplement to the printed newspaper, which creates a blended rate for the
     reporting of B&O taxes for newspapers.

     Under current statute, businesses that print or publish newspapers are subject to a 0.35
     percent B&O tax. These businesses have to file a complete annual tax performance report



     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                             SB 5541
     with the Department of Revenue. This tax preference is set to expire July 1, 2024.

     Summary of Bill: The B&O tax does not apply to any person engaging within the state of
     Washington in the business of printing a newspaper, publishing a newspaper, or both.

     Appropriation: None.

     Fiscal Note: Available.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: The bill takes effect on July 1, 2022.

     Staff Summary of Public Testimony: PRO: The JLARC tax review came out this year,
     and it appears that we are on the right track by lowering the B&O tax for newspapers.
     However, lots of newspapers have closed down and we need to be more aggressive. Some
     newspapers have shut down, some are online only, some newspapers have changed to a
     subscription model. Losses at newspapers are staggering. Subsidies are needed to maintain
     the level of service. The McClatchey Organization went into bankruptcy and has been
     purchased by another company, which affects four daily newspapers across the state. When
     considering legislation that requires legal notice, these funds are incredibly valuable for
     newspapers. A lot of businesses cannot afford to advertise during the pandemic, which is
     hurting the industry as well.

     Persons Testifying: PRO: Senator Mark Mullet, Prime Sponsor; Rowland Thompson,
     Allied Daily Newspapers of Washington.

     Persons Signed In To Testify But Not Testifying: No one.




Senate Bill Report                             -2-                                        SB 5541

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2022-01-25_a29562_d238870_bill-report-5541-sbr-bfst-ta-22.pdf
Size
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SHA-256
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Our copy
2022-01-25_a29562_d238870_bill-report-5541-sbr-bfst-ta-22.pdf
Original
app.leg.wa.gov
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