JLARC > JLARC Reports > 2017 Tax Preferences > International Banking Facilities (B&O Tax)

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International Banking Facilities | B&O Tax

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The Preference Provides Tax Type Estimated Biennial Beneficiary Savings

A business and occupation tax exemption for the gross receipts of international banking facilities.

Business and Occupation Tax
RCW 82.04.315

$208 thousand in the 2017-19 biennium

Public Policy Objective

JLARC staff infer the public policy objective is to encourage the establishment of international banking facilities in Washington.

Recommendations

Legislative Auditor’s Recommendation

Review and Clarify: The Legislature should review and clarify the B&O tax exemption for international banking facilities to provide an explicit public policy objective and metrics to determine if the objective has been achieved.

The Legislature may also want to review the relevance of the preference given changes to Washington’s apportionment laws.

Commissioner Recommendation: The Commission endorses the Legislative Auditor’s recommendation without comment.