Unregistered Businesses Cost State Millions - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Unregistered Businesses Cost State Millions

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KENNEWICK, Wash.- A new report shows businesses who fail to pay their taxes are costing the state hundreds of millions of dollars each year.

The state's not taking this lightly. They're making an effort to find businesses who aren't paying, and get them to pay up.

The state says most of the trouble is coming from construction businesses licensed in other states. Many of them aren't even collecting taxes and that has the state and their tax collecting competitors up in arms.

"They don't want to have to compete against somebody who's undercutting them, underbidding them because they're not paying their fair share of taxes," said Mike Gowrylow with the Department of Revenue. 

The state estimates they're losing $375 million each year because of unpaid business taxes.

They say most businesses don't even know they're doing it, and most of the time, when they catch a business and tell them what they owe, they end up paying without a fight.

They estimate those efforts gather an extra $25 million each year.