Contact legislators to VOTE NO on B&O tax increases in HB 3191 and SB 6143!

URGENT! Contact your  legislators immediately and tell them to oppose the House and Senate proposals to increase the business and occupation tax rates paid by professional service firms.  The legislature reconvened today in a “special” session to adopt a budget. Gov. Chris Gregoire, in calling the  special session, gave lawmakers a deadline. She wants the budget done in a week. So, time is of the essence.

Even if you have already done so, it is critical to have real people contacting their legislators NOW , by email and phone, to have any chance at stopping the proposals.  Feel free to use the message below and edit how you see fit, but it  is critical for people to deliver “real world” stories on the impact on their livelihood and that of their employees.   I have provided several examples below that members have already sent to their legislators.

Please OPPOSE an increase in the B&O tax rate on design professionals!

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House and Senate revenue packages (HB 3191 and SB 6143) include an increase in the rate paid by engineers, landscape architects and land surveyors and environmental consulting firms.  These businesses simply cannot absorb additional tax burdens during these challenging times.  The end result will be additional layoffs which will add to the unemployment rate, erode any potential for economic recovery, and further exacerbate the state’s revenue problem!

• Any increase in the B&O rate would be devastating for design businesses reeling in the current recession.  Since 2008, more than 4,200 design industry jobs have been lost in Washington and 33,100 jobs were lost in the entire construction industry in 2009.  Since just last March,  ACEC member firms have lost 19% of their workforce. This proposal threatens the viability of many of these firms.

• The B&O is a gross receipts tax applied irrespective of profitability, which is particularly harmful in a down economy like the one we are currently experiencing.  Design professionals and the thousands of good paying jobs they support are hurting, with no end in sight. A B&O increase will only make things worse.

• Studies have shown that previous B&O increases had a distinctly negative impact on the design professions – the 1993 increase caused a 9% drop in professional level employees in the following two years, according to a study conducted by Bellevue-based Hebert Research.

Some of our state’s leading engineering firms had this to say about the proposal:

“We have had multiple staff layoffs and our work load is decreasing.  Last year we laid off 15 percent of our staff and have already had to lay off an additional 5 percent in 2010.  A quick calculation suggests the proposed B&O surcharge will result in an additional $100,000 in taxes for my firm.  Considering we have already cut staff and eliminated all discretionary (and some nondiscretionary) spending and are still losing money, this $100,000 bottom line hit will result in the layoff of an additional 2 people.”

“This won't come out of profits…there aren't any…we will have to pay this increase with the loss of one person's job.”

“The economic viability of Architectural and Engineering Design firms is critical to keep design professionals in our State so that we are ready to put people back to work in the construction industry.”

“This current business environment is the toughest I have seen.  Our business has gone through several series of layoffs and now have staff farmed out to work in at least 4 other states as we struggle to stay viable until the local business environment turns around.  This proposed tax increase on gross receipts would be particularly harmful and result in addition job losses and permanently closing the doors of some engineering consulting firms.”

“Because we are a full service A/E firm our  projects “integrate” not only design and traditional A&E work but environmental and

technical work as well. It would be very difficult if not impossible to determine where A/E work begins and environmental and technical services end.”

VOTE NO on B&O tax increases in HB 3191 and SB 6143!

SENATE EMAIL HOUSE EMAIL FIND YOUR LEGISLATOR