Senate Bill Report SB 5199 — Tax Relief for Newspaper Publishers (January 12, 2023)
Summary
Senate Bill Report on SB 5199, as of January 10, 2023, titled "An act relating to tax relief for newspaper publishers." It lists Senator Mullet as sponsor, by request of Attorney General, and committee activity of Business, Financial Services, Gaming & Trade on 1/12/23. The bill repeals the preferential business and occupation (B&O) tax rate for publishing newspapers and, beginning January 1, 2024, businesses may deduct activities related to printing or publishing a newspaper or eligible digital content, or both. The Joint Legislative Audit and Review Committee is directed to perform a tax performance statement, and the preference expires on January 1, 2035. The report states the bill takes effect on January 1, 2024.
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- Issuer
- Congressional materials
- Document type
- Report
- Date
- 2023-01-12
- Case
- 2023 01 12 A30312 D247479 Bill Report 5199 Sba Bfgt 23
Cite this document
“Senate Bill Report SB 5199 — Tax Relief for Newspaper Publishers (January 12, 2023).”
Original at app.leg.wa.gov, dated 2023-01-12. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-01-12-2023-01-12-a30312-d247479-bill-report-5199-sba-bfgt-23/
, SHA-256 52d8642602178854b2be8f138e0f274069432019f4764a0e0ec9e538bef8f7cb.Full text
SENATE BILL REPORT
SB 5199
As of January 10, 2023
Title: An act relating to tax relief for newspaper publishers.
Brief Description: Providing tax relief for newspaper publishers.
Sponsors: Senator Mullet; by request of Attorney General.
Brief History:
Committee Activity: Business, Financial Services, Gaming & Trade: 1/12/23.
Brief Summary of Bill
• Replaces the current preferential business & occupation (B&O) tax rate
of 0.035 percent for newspapers with a B&O tax deduction for business
activity engaging in newspaper publishing or certain digital content.
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & TRADE
Staff: Clinton McCarthy (786-7319)
Background: Business and Occupation Tax. Washington's major business tax is the
business and occupation (B&O) tax. The B&O tax is imposed on the gross receipts of
business activities conducted within the state, without any deduction for the costs of doing
business. Businesses must pay the B&O tax even though they may not have any profits or
may be operating at a loss. A taxpayer may have more than one B&O tax rate, depending
on the types of activities conducted. Major B&O tax rates are 0.471 percent for retailing;
0.484 percent for manufacturing, wholesaling, and extracting; and 1.5 percent for services
and for activities not classified elsewhere. Several preferential rates also apply to specific
business activities.
Business and Occupation Tax Preference for Newspapers. In 2008 and again in 2012, the
Legislature temporarily revised the definition of newspaper to include electronic versions of
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 5199
newspapers. The effect of this is that both the online version of a newspaper and the
physical version of a newspaper were taxed at the B&O rate of 0.35 percent until July 1,
2015. 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 reporting B&O taxes
for newspapers. The B&O rate of 0.35 percent was extended through July 1, 2024. After
this date the rate will be increased to 0.484 percent.
These businesses have to file a complete annual tax performance report with the
Department of Revenue. The current tax preference is set to expire July 1, 2024.
Summary of Bill: The preferential B&O tax rate of 0.35 percent for publishing
newspapers is repealed. Beginning January 1, 2024, businesses may deduct activities
related to printing or publishing a newspaper, or eligible digital content, or both, from their
B&O tax. A business claiming this preference must include the deductible amount in its
gross income reported on its excise tax return.
Eligible digital content is defined as a publication that:
• is published regularly and at least once every three months;
• has no more than 50 employees, at least one of whom creates content;
• primarily features written content; and
• is made available to readers primarily or exclusively in electronic format.
Eligible digital content does not include content created by a radio or television broadcaster.
The Joint Legislative Audit and Review Committee is directed to perform a tax
performance statement for this tax preference.
This tax preference expires on January 1, 2035.
Appropriation: None.
Fiscal Note: Requested on January 7, 2023.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: The bill takes effect on January 1, 2024.
Senate Bill Report -2- SB 5199
File and source
- File
- 2023-01-12_a30312_d247479_bill-report-5199-sba-bfgt-23.pdf
- Size
- 7,715 bytes
- SHA-256
- 52d8642602178854b2be8f138e0f274069432019f4764a0e0ec9e538bef8f7cb
- Original
- app.leg.wa.gov