Budget & Taxes

Chair: Tim Rundquist AIA
trunquist@integrus.net

Capital Budget Position Statement

Taxes Position Statement

Capital Budgeting

The Council remains committed to ongoing dialogue with state agencies to maintain adequate funding for design services and to discuss, develop, and implement improved programming and design processes, methods of contracting, contract administration, and project delivery with the intent of maximizing the efficient use of public funds while maintaining equitable business relationships with consulting entities.

The Council supports the concept of determining the budgeting and delivery of planning funds in advance of capital construction funding to ensure that public funds are effectively and efficiently utilized. The Council also believes that providing for a responsible and efficient level of facility maintenance is critical to preserving these facilities and protecting the full value of this investment.

Taxes

The Council believes the B&O tax is onerous for design firms practicing architecture in this state. The service sector of Washington has traditionally paid a higher rate that other sectors. The Council supports repealing the tax credit against the B&O tax due and replacing it with an exemption on the monthly “gross income of the business.” The Council believes the Legislature should adopt a fair and equitable tax policy that would tax each firm only on the proceeds each firm has earned.

The Council opposes any legislation that imposes a sales tax on design services.

Legislative Accomplishments

2005

• Stopped new taxes from being imposed on the profession during a year with a $2.4 billion budget gap and $500 million in new and increased taxes were passed
• Stopped a repeal of the professional services exemption from the sales tax (HB 1095)
• Stopped a new tax on “intangibles” (SB 6004, SJR 8212)
• Stopped a new tax on “unearned income” (HB 2318)
• Stopped a new per employee “head tax” on businesses (SB 6103)
• Stopped a new tax on property lots and residences (SB 6103)

2006

• Passed a law creating a new tax exemption for solar water heating equipment (2SHB 2799)
• Passed a bill through the Legislature to reduce taxes on environmental remediation services (SSB 6781)