OLYMPIA — A bill on its way to the governor will broaden the B&O tax exemption allowed for childcare providers, easing the challenges to providers struggling to stay in business and maintaining the supply of high-demand childcare.
The existing B&O exemption for childcare providers currently applies to businesses that care for children up to age 8 for and for more than 24 hours. This includes nursery schools, preschools, childcare providers, and privately-operated kindergartens. SB 6038, sponsored by Sen. Claire Wilson (D- Auburn), extends the exemption to apply to children up to age 12 or up to age 18 if the child has a verified special need or is under court supervision.
“At a time when childcare is one of the biggest concerns for working parents, we need more childcare slots, not less,” Wilson said. “This modest exemption could mean the difference in whether a provider can continue to help address this critical need.”
SB 6038 had passed the Senate 48-1 and the House 95-1 after being amended. The Senate’s 46-1 concurrence on the House amendments clears the bill’s path to Gov. Jay Inslee to be signed into law.
