Exemption
Hospitals exempt from workforce education surcharges
B&O Tax exemption · RCW 82.04.299(2)(a)(i) · enacted 2019
Details
- Citation
- RCW 82.04.299(2)(a)(i)
- Study reference
- E1043-1
- Tax type
- B&O Tax
- Preference type
- Exemption
- Category
- Business
- Year enacted
- 2019
- End date
- None scheduled
Fiscal impact (2024 study estimates)
- Revenue if repealed — local ($M)
- FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
- Revenue if repealed — state ($M)
- FY 2024: 0 · FY 2025: 14.025 · FY 2026: 9.3 · FY 2027: 9.4
- Taxpayer savings — local ($M)
- FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
- Taxpayer savings — state ($M)
- FY 2024: 9.3 · FY 2025: 9.3 · FY 2026: 9.3 · FY 2027: 9.4
CTI = confidential taxpayer information · D = unable to disclose
From the 2024 DOR Tax Exemption Study
82.04.299(2)(a)(i) - Hospitals exempt from workforce education surcharges Description Select advanced computing businesses pay the workforce education investment surcharge of 1.22% on service and other activities B&O income. Hospitals (as defined in RCW 70.41.020) are exempt from the surcharge. Purpose To lower costs for hospitals. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $9.300 $9.300 $9.300 $9.400 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $14.025 $9.300 $9.400 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and in fiscal year 2025 impacts three quarters of workforce education investment advanced computing surcharge (ACS) tax collections. - Growth rate mirrors the service B&O taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - A hospital whose affiliated group has over $25 billion in revenues will have at least one affiliate engaging in advanced computing services. - The
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