The Washington Department of Revenue issued a special notice discussing the surcharge that applies, beginning on or after January 1, 2020, to select businesses engaged in advanced computing activities classified under the Service and Other Activities B&O tax classification. “Advanced computing” means designing or developing computer software or computer hardware, whether directly or contracting with another person, including modifications to computer software or computer hardware, cloud computing services, or operating an online marketplace, an online search engine, or online social networking platform. Specifically, a 0.5 percent surcharge will be imposed on businesses with worldwide gross revenue between $25 billion and $100 billion, and a 1.0 percent surcharge will be imposed on businesses with $100 billion or more in worldwide gross revenue. Worldwide gross revenue is determined based on the group of affiliated businesses as a whole, if at least one member of the group engages in advanced computing. The surcharge applies only to income reported under the Service and Other B&O Tax classification, and the amount of the surcharge may not be less than $4 million nor more than $7 million annually for any affected worldwide group. . A separate advanced computing surcharge reporting account (maintained by the parent company or another designated member of the affiliated group) must be established to report this surcharge. The advanced computing surcharge will be reported and paid on a quarterly basis. In addition to the advanced computing surcharge, a twenty percent Workforce Education Surcharge is also imposed beginning January 1, 2020 on select businesses primarily engaged in any combination of numerous specified activities, including, but not limited to, aerospace manufacturing, insurance and finance, non-store retailers. Advanced computing businesses that are members of a worldwide group with less than $25 billion in revenue may be subject to the Workforce Education Surcharge. For more information, please contact Michele Baisler at 206-913-4117.