State group recommends axing, replacing B&O tax on businesses

A group of lawmakers wants to get rid of a tax that causes many small business owners heartache.

The Tax Structure Work Group is recommending to the Legislature that the state’s business and occupation tax be replaced by a different type of tax called a margin tax.

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The bipartisan group of legislators and other policymakers spent four years studying the state’s nearly 100-year-old tax system and looking at ways to “make the state’s taxes more transparent, stable, fair, and adequate,” according to a statement from the group.

The B&O tax on businesses is based on

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