Analysis Complete for Engrossed Second Substitute House Bill 2158

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The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal Year		B&O Tax
2020		$ 113,100,000
2021		266,900,000
2022		192,200,000
2023		200,900,000
2024		211,100,000
2025		240,200,000
2026		246,800,000
2027		253,500,000
2028		260,400,000
2029		267,500,000
Total:		$ 2,252,600,000

This bill would implement new, and expand existing, workforce education opportunities to help prepare people for jobs that will require postsecondary credentials.  A Workforce Education Investment Account would be created to provide funding to carry out the various initiatives listed in the bill.  Activities listed in the bill would be funded by surcharges levied on the Business and Occupation (B&O) taxes paid by various entities.  The surcharges would take effect on business activities occurring on or after January 1, 2020.

The Washington State Board for Community and Technical Colleges does not set, administer or collect any of the taxes listed in this bill.

WWU will not receive cash receipts as a result of this bill, but instead will receive appropriations as result of the bill.

Section 74.1.a: Imposes a 20 percent business and occupation (B&O) surcharge on the income from service and other activities of select businesses. 

Section74.4.a.i: Imposes a 33.33 percent B&O surcharge on the income from service and other activities of advanced computing businesses with revenue of more than $25 billion, but less than $100 billion. 

Section 74.4.a.ii: Imposes a 66.66 percent B&O surcharge on the income from service and other activities of advanced computing businesses with revenue of more than $100 billion.

The bill provides appropriations to Eastern Washington University. Per OFM instructions, we have not included these amounts in the 10 year analysis.

WSU will not collect any cash receipts from the fees in this bill.

L&I will not have cash receipts associated with this bill.

The Office of Financial Management receives no cash receipts for the requirements of this bill.

The Office of the Governor will not receive any cash receipts related to the requirements of this bill.