Exemption
Provider clinics exempt from workforce education surcharges
B&O Tax exemption · RCW 82.04.299(2)(a)(ii) · enacted 2022
Details
- Citation
- RCW 82.04.299(2)(a)(ii)
- Study reference
- E1044-1
- Tax type
- B&O Tax
- Preference type
- Exemption
- Category
- Business
- Year enacted
- 2022
- 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- Revenue if repealed — local ($M)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- Revenue if repealed — state ($M)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: 10.8 · FY 2026: 5.2 · FY 2027: 5
- Taxpayer savings — local ($M)
- FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
- Taxpayer savings — state ($M)
- FY 2024: 5.5 · FY 2025: 5.3 · FY 2026: 5.2 · FY 2027: 5
CTI = confidential taxpayer information · D = unable to disclose
From the 2024 DOR Tax Exemption Study
82.04.299(2)(a)(ii) - Provider clinics 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. Provider clinics offering primary care, multispecialty, surgical, or behavioral health services are exempt from the surcharge. Affiliates of the provider clinic are also exempt from the surcharge if the affiliate meets one of the following: - Offers health care services or provides administrative support for the provider clinic. - Is an independent practice association. - Is an accountable care organization. Purpose To lower costs for provider clinics. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $5.500 $5.300 $5.200 $5.000 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 $10.800 $5.200 $5.000 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
Does this apply to you?
This is reference data from the 2024 study — not advice, and 2025–26 legislation may have changed it. Three ways to go deeper: