Gotta Love It….Right? B&O Taxes
Here’s the City of Tacoma’s explanation for the most antiquated, convoluted, and business-unfriendly tax in history, our beloved B&O; (Business and Occupation Tax–even the name is bad).Services and Other: apportioned to a city by multiplying service income by a payroll factor (based on the payroll within the jurisdiction), plus the service-income factor (based on the income producing activity attributable for tax purposes within the jurisdiction), divided by two:
Total taxable service income x (Payroll Factor + Service Income Factor)/2
Payroll Factor = City Compensation Paid/Total Compensation Paid Everywhere
Service Income Factor = Service Income In City/Total Service Income Everywhere
Note (my favorite): If a business has no employees…such as a sole proprietorship…then the payroll factor is zero and the apportionment reverts to a single factor formula using the service factor only. In this case divide the service factor by 1.
Got that?
Here’s the City of Tacoma’s explanation for the most antiquated, convoluted, and business-unfriendly tax in history, our beloved B&O; (Business and Occupation Tax–even the name is bad).Services and Other: apportioned to a city by multiplying service income by a payroll factor (based on the payroll within the jurisdiction), plus the service-income factor (based on the…
The government sure doesn't seem to like entrepreneurs much. Running your own business is crazy in the paperwork/tax world. Ugh.Good thing that dividing something by one is rather easy [laughing]. ~Luke
Personally, I was hoping they'd tell me to divide by zero.
What!? Business and Occupation Tax. That is CRAZY!! Where else is this happening beside Tacoma?If they want to kill the economy, this is the way to go.Giovanna Garcia