2017 legislative review
other bills, including HB 1730, HB 1926, and HB 2186.
HB 1549 / SB 5112 closing and modifying tax incentives
Failed / AWB Opposed
Gov. Jay Inslee proposed closing several tax incentives to fund his budget proposal. House Bill 1549 and Senate Bill 5112 would have narrowed the use tax exemption for extracted fuel, transitioned the nonresident sales and use tax exemption into a remittance program, eliminated the sales and use tax exemption for bottled water, limit the real estate excise tax( REET) foreclosure exemption, and limit trade-in exclusion to $ 10,000. Tax incentives play an important role in Washington to keep businesses competitive. While these bills didn’ t progress, components of the bills were included in the final budget deal.
HB 1904 imposing tax on sale of personal information
Failed / AWB Opposed
Rep. Norma Smith, R-Clinton, introduced House Bill 1904, which sought to impose a business and occupation( B & O) tax on the sale of Washington residents’ personal information. HB 1904 would have done what no other state has done or tried to do: apply an extremely high gross receipts tax broadly across many industries impacting up to 25,000 taxpayers. Businesses with nexus under current law are paying taxes under the applicable B & O category; HB 1904 would have applied a rate that is between 120 percent and 600 percent higher than the current rate they are paying taxes on.
SB 5358 tax and licensing laws
Passed / AWB Supported
Senate Bill 5358 is the annual Department of Revenue( DOR) clean-up bill offered by Sen. Mark Schoesler, R-Ritzville. The goal of these bills is to have negligible if not zero fiscal impact on the budget and address non-controversial changes related to the DOR. The bill was well worked prior to session this year and as a result sailed through the Legislature without issue. The non-controversial nature of these bills allows for important statutory and administrative updates to pass through the Legislature without issue.
SB 5888 b & o manufacturing tax rate reduction
Failed / AWB Supported
Sen. Michael Baumgartner, R-Spokane, introduced Senate Bill 5888, which would have reduced the general manufacturing business and occupation tax rate and the processing for hire rate from 0.484 percent to 0.2904 percent. While the manufacturing sector has gained momentum nationally in recent months, manufacturing activities in Washington continue to struggle. Washington is a high business tax state, and it is hard for our manufacturers, particularly those that compete on a global scale, to remain competitive. This bill represented an excellent opportunity to provide some relief to manufacturers in Washington. Similar language was passed as part of the final budget deal and later vetoed by the governor.
HB 1764 / SB 5772 property tax revenue limit
Failed / AWB Opposed
House Bill 1764 and Senate Bill 5772, sponsored by Rep. Kristine Lytton, D-Anacortes, and Sen. Jamie Pedersen, D-Seattle, respectively, would have changed
Rep. Kristine Lytton, D-Anacortes, chair of the House Finance Committee.
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