Washington Business Fall 2017 | Legislative Review & Vote Record | Page 51

issue area reports | taxation
the annual regular property tax revenue
growth limit to the greater of 100 percent
plus population change and inflation, but
not to exceed 105 percent, and 101 percent.
The legislation reaffirms the wisdom of
a property tax limit factor and reaffirms
the important role counties play and their
legitimate need to be adequately funded.
The obvious concern is that eliminating or
modifying the cap would raise property taxes.
HB 2115/HJR 4208
property tax homestead
exemption
Failed/AWB Opposed
House Bill 2115 would have provided a state
property tax homestead exemption on the
first $50,000 of the value of a residence
and is reliant upon House Joint Resolution
4208, which amends the Washington State
Constitution to grant the Legislature the
authority to provide a homestead exemption
from property taxes levied for state
purposes on up to $50,000 of residential
real property valuation. AWB opposed this
policy because it will not result in a tax
reduction in any locality; rather, it will result
in a tax shift that will harm Washington’s
long-term competitiveness. Adoption of this
split roll system would result in a tax shift
from residential real estate to commercial
and industrial real estate. Shifting more of
the tax burden to employers creates a less
attractive environment for those seeking
to make investments that create jobs in
Washington, and would, in particular,
create a further disincentive for business
with high value properties. It also runs
counter to the sound uniformity provision
for property taxes set forth in Article VII of
the Washington Constitution.
Bill considered as part of
AWB’s voting record
HB 1894/SB 5630
high-technology research
tax
Failed/AWB Supported
Gov. Jay Inslee brought forward legislation
that would have brought Washington back
in line with other states. Washington state
is currently at a competitive disadvantage
because it is one of a few states without
research and development (R&D) tax
i n c e n t i ve s. R & D t a x c re d i t s a re a n
important tool for helping attract, retain,
and grow high-tech companies and jobs in
our state. The incentives were established
in 1994, renewed in 2004, and existed
until they were allowed to expire on Jan. 1,
2015. House Bill 1894 and Senate Bill 5630
would have reinstated the R&D incentives
on a limited basis for biotechnology, and
the nascent space travel industry. Both
bills received bipartisan support in their
respective chambers, but failed to pass out
of their fiscal committees. Expect this issue
to return in 2018.
HB 2145/HB 2146
aerospace job incentives
Failed/AWB Opposed
The House Finance Committee heard
testimony on House Bill 2145 and 2146.
The former, sponsored by Rep. Noel Frame,
D-Greenwood, and the latter by Rep. Richard
DeBolt, R-Chehalis. The legislation attempted
to amend the tax incentive agreement reached
Sen. Kevin Ranker, D-Orcas Island, ranking minority member of the Senate Ways and
Means Committee.
Favorable outcome for
Washington businesses
Missed Opportunities
special edition 2017 49