WA HB2097

Authorizes Washington counties to impose a business and occupation (B&O) tax on gross receipts, with a maximum rate of 0.0020 (0.2%), effective January 1, 2027

Requires counties to adopt mandatory provisions from a model ordinance developed through the Washington State Association of Counties, including uniform definitions, a minimum $20,000 annual small business exemption, and standardized penalty/interest provisions aligned with state law

Establishes a credit system to prevent double taxation when both a county and a city within that county impose B&O taxes, allowing full credit for city B&O taxes paid on the same taxable event

Mandates a referendum procedure for any county first imposing the tax or increasing rates, requiring signatures from at least 15% of registered voters within 30 days to place the measure on the ballot

Exempts public utility activities already taxed under chapter 82.16 RCW and requires nexus (sufficient business connection) with the county before the tax can be imposed