issue area reports | taxation
HB 2542 film industry tax credits
Failed / AWB Supported
House Bill 2542, sponsored by Rep. Marcus Riccelli, D-Spokane, sought to extend the film industry tax credit, currently set to expire on July 1, 2017, to Dec. 31, 2023 while phasing in an increase to the current cap of $ 3.5 million to $ 10 million by 2020 and thereafter. The film industry provided detailed information on how the Washington Motion Picture Competitiveness Program has helped revitalize Washington’ s competitive position as a location for motion picture projects, as well as demonstrating the tangible economic impacts accrued as a result of the tax credit. With the incentive set to expire, 2017 will be a decisive year for the tax credit and the many opportunities the motion picture industry brings to the state.
SHB 2226 tax incentives for spacecraft manufacturing
Failed / AWB Supported
Substitute House Bill 2226 provides tax preferences to promote development of the outer space sector in Washington’ s economy for the purpose of encouraging the migration of high-wage jobs in the state. This bill leverages Washington’ s vibrant aerospace manufacturing industry and attempts to build upon it in order to create new economic opportunities for the people and businesses of Washington. This bill was put forward by Rep. Jeff Morris, D-Mount Vernon. It moved out of the House Committee on Technology & Economic Development, but stalled in the House Finance Committee.
HB 2830 dynamic fiscal notes
Failed / AWB Supported
AWB supported a bill sponsored by Rep. Bruce Chandler, R-Granger, which would have improved the state’ s fiscal note process. Washington uses fiscal notes to estimate the expenditure and revenue impacts of proposed legislation. The current process looks at the impacts over a six-year timeframe— the current biennium and the following two biennia. While the current process is helpful and informative, it can be inaccurate and even misleading at times. For instance, a bill establishing a different tax rate for the specific purpose of wooing a company not currently doing business in Washington would show up as a revenue loss to the state under the current fiscal note process. A dynamic fiscal notes process could account for the fact the company isn’ t currently conducting business in Washington, and that any activity generated via a lower tax rate would actually increase state revenue. Moving toward dynamic fiscal notes in certain circumstances can greatly improve the accuracy of fiscal analysis and give lawmakers important information to help in the decision making process. The bill received a hearing in the House Appropriations Committee, but failed to gain traction this year.
SB 6665 broadcaster tax
Failed / AWB Neutral
Darcy Kooiker of Ryan LLC and Eric Lohnes, AWB, testify in support of HB 2879.
Senate Bill 6665 made a late appearance in the 2016 legislative session. Originally introduced as a title-only bill— which is essentially a bill without content— it was revealed at a Senate Ways and Means Committee hearing on March 11 to deal with tax nexus issues related to national television networks. The question has been raised as to whether national television networks have nexus with Washington, and therefore, owe business and occupation( B & O) tax on their advertising and royalty income. Also
Bill considered as part of AWB’ s voting record
Favorable outcome for Washington businesses
Missed Opportunities
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