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News & Press: Advocacy News

BOMA Victory on Behalf of Members & the CRE Ownership - Business & Occupation Tax

Tuesday, April 30, 2019   (0 Comments)
Posted by: Christine Miclat
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The legislature passed a bill that will raise the B&O tax on 43 service business types from 1.5% to 1.8%. BOMA, working closely with real estate coalition partners, was successful in excluding real estate services from this new 20% B&O tax surcharge.

 

The language in the legislation that passed contain a couple of unusual clauses that are somewhat ambiguous and set unusual precedents.  The statute includes language that says imposing the surcharge is construed against the taxpayer and in favor of the tax. It also sets precedent by changing the burden of proof for a taxpayer to prevail in a challenge to an assessment from a preponderance of the evidence to a higher “clear, cogent, and convincing” evidence standard. 

 

NAICS codes for real estate businesses: These do not appear in the business types subject to the B&O 20% surcharge tax. The surcharge takes effect July 1, 2019

 

Real Estate Agents & Brokers 531210

Residential Property Managers 531311

Non-Residential Property Managers 531312

 

Activities subject to the 20% surcharge B & O tax:

 

NAICS

NAICS Title

9211

Executive, Legislative, and Other General Government Support

8139

Business, Professional, Labor, Political, and Similar Organizations

6223

Specialty (except Psychiatric and Substance Abuse) Hospitals

6221

General Medical and Surgical Hospitals

6219

Other Ambulatory Health Care Services

6215

Medical and Diagnostic Laboratories

6214

Outpatient Care Centers

6213

Offices of Other Health Practitioners

6212

Offices of Dentists

6211

Offices of Physicians

5611

Office Administrative Services

5511

Management of Companies and Enterprises

5419

Other Professional, Scientific, and Technical Services

5418

Advertising, Public Relations, and Related Services

5417

Scientific Research and Development Services

5416

Management, Scientific, and Technical Consulting Services

5415

Computer Systems Design and Related Services

5414

Specialized Design Services

5413

Architectural, Engineering, and Related Services

5412

Accounting, Tax Preparation, Bookkeeping, and Payroll Services

5411

Legal Services

5331

Lessors of Non-financial Intangible Assets (except Copyrighted Works)

5259

Other Investment Pools and Funds

5242

Agencies, Brokerages, and Other Insurance Related Activities

5241

Insurance Carriers

5239

Other Financial Investment Activities

5231

Securities and Commodity Contracts Intermediation and Brokerage

5223

Activities Related to Credit Intermediation

5222

Non-depository Credit Intermediation

5221

Depository Credit Intermediation

5211

Monetary Authorities-Central Bank

5191

Other Information Services

5182

Data Processing, Hosting, and Related Services

5179

Other Telecommunications

5174

Satellite Telecommunications

5172

Wireless Telecommunications Carriers (except Satellite)

5171

Wired Telecommunications Carriers

5152

Cable and Other Subscription Programming

5112

Software Publishers

5111

Newspaper, Periodical, Book, and Directory Publishers

4541

Electronic Shopping and Mail-Order Houses

4251

Wholesale Electronic Markets and Agents and Brokers

4234

Professional and Commercial Equipment and Supplies Merchant Wholesalers

3364

Aerospace Product and Parts Manufacturing

2213

Water, Sewage and Other Systems

2211

Electric Power Generation, Transmission and Distribution

 


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