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Rather, different types of businesses are taxed at different rates, depending upon their classification by the Washington State Legislature and the Washington State Department of Revenue. [3] [4] Service industry businesses have the heaviest tax burden, with a tax rate of 1.5%, more than triple the other major classifications.
The tax collected more than $890 million in revenue in its first year, [23] significantly exceeding the approximately $500 million in revenue initially projected. [24] The Department of Revenue projects the tax will bring in over $5 billion over the next 6 years. [25] Fewer than 4000 people pay the tax, [3] and 85% of the revenue comes from ...
Property tax was the first tax levied in the state of Washington and its collection accounts for about 30% of Washington's total state and local revenue. It continues to be the most important revenue source for public schools, fire protection, libraries, parks and recreation, and other special-purpose districts.
That expected decline in revenue is already anticipated by the Washington State Department of Transportation and partially contributing to its impending budget deficit.
Washington v. Association of Stevedores, 435 U.S. 734 (1978) was a Supreme Court case in which the court held that the State of Washington's business and occupation tax, which may affect interstate commerce, does not violate the Commerce Clause, thus enabling the states to "under appropriate conditions, tax directly the privilege of conducting interstate business."
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