2022 legislative review
to the area to build up a manufacturing cluster . Current projects in discussion have direct employment opportunities of 1,500 and indirect employment of over 5,000 , helping some companies to build after declines during the pandemic . This bill passed with significant support in both the Senate ( 46-1 ) and in the House ( 96-1 ).
SB 5901 targeted counties investment project tax deferrals
Passed / AWB Supported
AWB supported this bill , sponsored by Sen . Emily Randall , D-Bremerton , which creates a manufacturing and research and development sales and use tax incentive program for targeted counties . The bill expands the warehouse sales and use tax exemption to include warehouses over 100,000 square feet in targeted counties .
The bill did cap the maximum amount of sales and use tax that may be exempted for the construction or expansion of any warehouse or grain elevator at $ 400,000 and expires the warehouse sales and use tax exemption on July 1 , 2032 . This bill passed the Senate 46-0 and was amended slightly in the House and passed 69-28 . AWB tried to remove the $ 400,000 cap for the construction or expansion of any warehouse or grain elevators in House Finance committee , but that amendment failed . The Senate concurred with adopted House amendments 69-28 .
SB 5932 sales and use tax rate
Failed / AWB Supported
AWB supported this bill , sponsored by Sen . Mona Das , D-Kent , which would have reduced the state sales and use tax rate to 5.5 %. Although AWB strongly supported efforts for tax relief , this bill never even received a hearing despite our attempts to persuade the Legislature to do so .
SB 5957 manufacturing b & o tax rate
Failed / AWB Supported
AWB supported this bill , sponsored by Sen . Mark Mullet , D-Issaquah , which would have reduced the manufacturing B & O tax from 0.484 % to 0.275 %. The bill ’ s fiscal note indicated this would had a less than $ 200 million per biennium impact and would have been a shot in the arm to our state manufacturing industry . Sadly , this bill did not receive a hearing despite our efforts to encourage the Legislature to do so .
SSB 5980 b & o tax credits
Passed / AWB Supported
AWB supported this bill , sponsored by Sen . Reuven Carlyle , D-Seattle , which increases the B & O tax small business credits and increases the tax filing threshold . For non-service businesses , the small business B & O credit amount is increased from $ 35 per month in the tax reporting period to $ 55 per month . For service businesses , the small business B & O credit amount is increased from $ 70 per month in the tax reporting period to $ 160 per month . The B & O tax filing threshold is increased to $ 125,000 annually . This bill passed out of the Senate 46-0 . In the House we were able to get an amendment through that exempts the increases in the B & O tax small business credit from the requirements of a tax preference performance statement , a JLARC study , and an automatic expiration . The bill passed out of the House with this amendment 97-0 and the Senate concurred 48-0 .
Sen . Mark Mullet , D-Issaquah , chairs the Senate Business , Financial Services & Trade Committee .
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