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process and substance. Business organizations must be allowed 30 days to submit comments <br />for inclusion in the report. <br />The Legislature directs cities, towns, and identified business organizations to partner and <br />recommend changes to simplify the two- factor municipal B &O tax apportionment formula. <br />The Local Business and Occupation Tax•Apportionment Task Force must consist of the <br />following seven representatives: three voting representatives selected by the AWC that are <br />tax managers representing municipalities that impose a B &O tax, including at least one <br />jurisdiction that has performed an audit where apportionment errors were discovered; three <br />voting representatives selected by the AWB, including at least one tax practitioner or legal <br />counsel with experience representing business clients during municipal audits that involved <br />apportionment errors or disputes; and one nonvoting representative from the Department who <br />will serve as the task force chair. The Department will staff the task force. The task force <br />may seek input or collaborate with other parties if necessary. The task force must present its <br />recommendations to the Legislature by October 31, 2018. <br />Appropriation: None. <br />Fiscal Note: Available. <br />Effective Date: The bill takes effect 90 days after adjournment of the session in which the <br />bill is passed. <br />Staff Summary of Public Testimony: <br />(In support) This bill continues several years of work by the committee to help small <br />businesses with regulations and reports. This bill is a proactive and reasonable step towards <br />simplifying business regulation requirements. <br />Representatives from cities and the business community have spent the last summer working <br />on a task force in order to develop recommendations for improving the business licensing <br />requirements. This bill reflects the cooperation and compromise that took place during the <br />work sessions, as well as represents a huge amount of work and many unanimous decisions. <br />The task force came to multiple tactical and strategic solutions to issues. <br />Both the cities and business community agree that a "one -stop shop" model for obtaining a <br />license and renewing licenses makes sense. The simplicity will increase compliance, get <br />more businesses registered, and will result in significant time savings for small businesses. <br />The Department's BLS is a logical centralized portal. <br />The model ordinance will also help businesses comply with city licensing requirements. <br />Recommendations on how to improve apportionment can be completed sooner than 2018, <br />and presented to the legislature next session. The apportionment system is broken, and no <br />one defended it on the task force. To complete the recommendation, the right people need to <br />be at the table to have the discussion. <br />House Bill Report <br />- 5 - EHB 2005 <br />19 <br />