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Published on Friday, May 5, 2017

Governor signs business license streamlining bill

Last week the Governor signed EHB 2005 into law. The law takes effect on July 23, 2017.

The final version of the bill:

  • Requires cities to partner with the state’s business licensing system in the next five years, if funding is appropriated. The timeline is phased in over 10 years if funding is not provided;
  • Provides an exemption for cities to choose FileLocal as an alternative for business license administration through 2020;
  • Allows the Department of Revenue to grant up to a three-year delay for a city based on a fiscal or technical hardship;
  • Requires cities to develop and implement by January 1, 2019, a model licensing ordinance that includes a minimum threshold; and
  • Creates a work group on local B&O tax apportionment of service income under RCW 35.102.130 staffed by the Department of Revenue. The task force will make recommendations by October 31, 2018.

AWC is in the process of planning further communications on implementation of the bill provisions. Watch for more information in future Legislative Bulletins.

Categories: Budget & finance