Rep. Mark Harmsworth seeks tax relief for new small businesses

February 15, 2015

The toughest period of time for start-up businesses to success is within the first two years. One state lawmaker has proposed a bill that could give new businesses a better opportunity to survive and thrive. John Sattgast reports from Olympia.

SUGGESTED LEAD: The toughest period of time for start-up businesses to success is within the first two years. One state lawmaker has proposed a bill that could give new businesses a better opportunity to survive and thrive. John Sattgast reports from Olympia.

Sattgast: 44th District State Representative Mark Harmsworth says one of the greatest challenges for start-up small businesses is paying the state's business and occupation tax. Even if a business doesn't make a profit, they are taxed on gross income. So Harmsworth, a Republican from Mill Creek, has introduced House Bill 1861, which would provide a two-year deferral on their B&O taxes.

Harmsworth: “It's basically targeted at our small new businesses that are starting in our state. And we're trying to give them that extra help the first couple of years that they are starting up, when they have those capital costs, opening offices, buying equipment and hiring staff. And doing whatever we can to help them get through that first critical phase of their startup.”

Sattgast: The bill would apply to businesses with gross incomes of less than 500-thousand dollars that have been in operation for less than a year. Harmsworth told the House Finance Committee on Friday the measure could eventually bring more income to the state as more small businesses survive those first two years and become profitable.

John Sattgast, Olympia.