Initiative 1098: What is Considered a 'Small Business'?

The B&O tax is based on a business's gross receipts, without deductions for equipment, supplies, rent, employee pay, or other necessary costs of business. Rates are lower on types of companies that typically have high overhead, such as retailing and manufacturing, and higher on services that usually have fewer expenses to operate.I-1098 will raise the small business credit from $420 to $4,800 per year. Businesses that owe less than that amount would pay nothing in B&O tax -- and most would not have to file. The credit phases out gradually, so firms owing between $4,800 and $9,600 per year would see a reduction in their state tax. Companies owing above that level would see no change