Washington Business Fall 2016 | Legislative Review | Page 35

issue area reports | taxation

local business and occupation tax rates
and licensing requirements has proven
a difficult struggle for many employers.
This task force will work to assemble
meaningful policy options to make the
process less cumbersome on businesses
in the future.

SB 5449

tax court

Failed/AWB Supported
Senate Bill 5449, sponsored by Sen. John
Braun, R-Centralia, would have eliminated
the Board of Tax Appeals and transferred
the duties to a new division in the Court
of Appeals. The bill would have improved
fairness for taxpayers, promoted due
process and improved our state’s ranking
from the Council on State Taxation from
a C+ to an A-. A top priority for AWB is
to provide an independent process for
appealing tax assessments while allowing
taxpayers to appeal without prepayment
requirements. Now that DOR has clarified
that they do not conduct independent
reviews, this case is more important than
ever. AWB will be back in strong support of
this concept in 2017.

HB 2638

aerospace tax incentives
Failed/AWB Opposed

The House Finance Committee heard
testimony on House Bill 2638, sponsored
by Rep. June Robinson, D -Everett. It
attempted to amend the tax incentive
agreement reached in 2013 by requiring
aerospace manufacturers, and Boeing
specifically, to maintain a certain number
of jobs in the state. AWB President Kris
Johnson, along with several members
representing local chambers and small
businesses across the state, testified against
the bill because of the harm it would have
on Washington’s economy and to the
state’s ability to recruit new companies.

Bill considered as part of
AWB’s voting record

Sen. John Braun, R-Centralia, Senate deputy majority leader, is vice chair of three committees:
Trade & Economic Development, Commerce & Labor, and Ways & Means.

HB 2638 sent the wrong message; namely,
that Washington is a state that doesn’t
keep its word. The bill was voted on in
committee, but failed to pass.

HB 2996

tax preferences/
k-12 funding
Failed/AWB Opposed

House Bill 2996, sponsored by Rep. Kristine
Lytton, D-Anacortes, was one of a series of
bills aimed at closing tax incentives to raise
revenue. The House Finance Committee
took up HB 2996, titled “investing in a
well-qualified and sufficient K-12 public
education workforce by narrowing or
eliminating tax preferences.” The bill
received a “do pass” recommendation on
a party-line vote, after which it lingered
in the House Rules Committee until it
eventually ran out of time. Other variations
of this theme offered by House Democrats
included bills that fell under the so-called
“corporate tax accountability” heading,
and included bills like House Bill 2992,
concerning large private airplane taxes;

Favorable outcome for
Washington businesses

House Bill 2994, concerning aerospace
tax incentives; and House Bill 2479, which
would have eliminated a handful of tax
incentives. While none of these bills made
it past their House of origin this year, we
expect the conversation to continue next
year as lawmakers work to create a budget
that funds the McCleary K-12 education
funding obligations.

HB 2879

consolidating annual
report and survey
Failed/AWB Supported

House Bill 2879, sponsored by Rep. Terry
Nealey, R-Dayton, would have made
meaningful progress toward AWB’s goal of
reducing red tape and paperwork burdens
facing employers. Over the last 20 years, the
Legislature has required taxpayers to file an
annual survey or report in order to qualify
for a variety of new economic developmentrelated tax preferences. There are currently
32 economic development-related tax
preferences that require one of these
filings. By all accounts, both the annual

Missed Opportunities

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