Capture B&O Tax Savings on Light Bulbs

Capture B&O Tax Savings on Light Bulbs

Article by: Sound Accounting & Technology LLC

Department of Revenue Washington State announced a 45 cent per bulb increase in Environmental Handling Charge (EHC), from 50 cents to 95 cents per bulb in early 2018. Producers and Retailers of mercury containing light bulbs pay the charge toward a light bulb recycling program.

Those who add the EHC charge to the price of mercury containing lightbulbs can take an exemption for B&O tax. Retailers can also keep some of the charge to cover collection costs. Tracking systems themselves need to be optimized. Capturing the tax savings is straightforward when businesses utilize SoundCPA Insights Financial and Tax Reporting. In many cases, support for B&O exemptions can be accomplished without extensive custom programming. Saving tax dollars, and contributing to a healthy environment.