If you are a business in Sumner, you can designate some of your State B&O tax to support Sumner Downtown Association, at no additional cost to your business.
The Program’s History
In 2005 legislation was passed to create the “Main Street Tax Credit Incentive Program”. Through the program, businesses that pay a Business and Occupation Tax (B&O) credit or a Public Utility Tax (PUT) can take a tax credit for contributions given to eligible downtown revitalization organizations, including the Sumner Downtown Association (SDA). In effect. this refocuses a portion of your tax dollars towards Sumner, supporting our local downtown organization and its activities. SDA is eligible to receive up to $100,000 in tax credit contributions annually. Time, however is of the essence as there is a cap on the amount of credits available state-wide each year, and it is a first-come-first-serve process.
How The Program Works
Note: You must be registered to file your excise tax electronically (E-filer) with Washington State Department of Revenue (DOR) to take advantage of this opportunity.
- Go to the Department of Revenue web site at http://dor.wa.gov/ and enter your E-file account.
- You will be on your “My Account” page, select “Credits & Tax Incentives” (to the left).
- Click on “Apply for Main Street Credit”
- Read through the “Before you start” information then Click on “Get Started”
- Using the scroll down list, select “Sumner Downtown Association” as the organization to whom you will make a contribution. Then click on “NEXT”
- Type in your contribution amount and click on “NEXT”
- Review the summary page – it will show your contribution amount and the amount of your tax credit. If all is correct, click on “NEXT”
- Follow the agreement instructions on the next window and then click on “Submit”. Approval is almost instantaneous – you will see confirmation of both your contribution and your tax credit amount.
- After receiving approval, you must make your contribution directly to the SDA anytime on or before December 31, of this year. Once you make your contribution, be sure to get a receipt from SDA and take your tax credit next year.
Department of Revenue Contact: Tiffany Volkman (363) 902-7126 or firstname.lastname@example.org
By the Numbers
If your check
Your B&O Tax
|$ 500||$ 375||$ 500|
|$ 1,000||$ 750||$ 1,000|
|$ 5,000||$ 3,750||$ 5,000|
|$ 7,500||$ 5,625||$ 7,500|
Note: 75% of your contribution to the SDA this year may be used against your next year’s B&O or PUT tax liability. A portion of your tax credit incentive program to the SDA may qualify as a deduction on your company’s IRS tax return (check with your accountant).
For more information, contact the Sumner Downtown Association or the Department of Revenue.
The benefits of the program to you may vary depending on your type of business, your tax commitment, and other factors. Interested contributors should contact their accountant to confirm the full extent of the tax benefit for your business.
We thank you for your support!