The upcoming legislative session will feature discussions about whether new revenues are necessary; inevitably there will be legislative proposals to increase business taxes. According to a report from the Council on State Taxation, businesses in Washington paid 50.1 percent of state and local taxes in 2017, well above the U.S. average of 43.7 percent. Additionally, Washington businesses paid $5,700 in state and local taxes per employee, the seventh highest amount in the country and 16.3 percent more than the national average.

Washington businesses pay more in business and occupation (B&O) taxes than businesses in other states do in income taxes, on average. B&O tax revenues have increased by more than the other major state taxes since 2000 and Washington businesses pay more in sales and property taxes than they do in B&O taxes. Overall, compared to other states, Washington businesses face a tax burden that is significantly above average. Further, the size of the burden varies from city to city within Washington.

Read the full report here.