The Senate Agriculture, Water and Rural Economic Development Committee today considered a bill aimed at putting more buzz into the state’s honeybee industry. Senate Bill 6402, sponsored by Sunnyside Sen. Jim Honeyford, would exempt honeybee products and services from the state’s onerous business and occupation tax by defining them as agricultural products.
“Washington has many crops that depend upon bees for pollination to produce profitable crops,” said Honeyford, who serves as ranking Republican on the committee. “All kinds of products come from bees, including honey, pollen, beeswax, propolis, and many others. Just as the state considers milk that comes from cows to be an agricultural product, so should it consider products derived from honeybees.”
Washington is the only state to impose a business and occupations tax, which is levied on the gross receipts of all business activities. Unlike a corporate net income tax, there are no deductions for the costs of doing business. Small businesses often struggle in their first several years just to make a profit; many in Washington fail as a result of hitting the low B&O threshold but ending up in the red and losing money. Continue reading