Washington Business Fall 2018 | Legislative Review & Vote Record | Page 10

2018 legislative review
Coming Up Short for Manufacturers
For the second straight year, Washington manufacturers were poised
to receive needed tax relief. But once again, it failed to materialize.
Jason Hagey
AWB President Kris Johnson, with Harry Ross of Cascade Designs (a Seattle manufacturer of outdoor recreational equip-
ment), during a February hearing on House Bill 2947, regarding the business and occupation tax rate on manufacturers.
At A Glance
Last year, lawmakers approved a plan
to lower the business and occupation
(B&O) tax rate for manufacturers, but
it was vetoed by the governor before it
could take effect.
This year, legislators considered a new
proposal to lower the B&O tax rate
for manufacturers, but it failed to pass
the Legislature.
In 2019, AWB will continue to push for a
reduced B&O tax rate for manufacturers.
Another year, another missed opportunity.
Lawmakers had a chance during the 2018 legislative session to make up for
one of the biggest failures of 2017 by agreeing on a plan to lower the business
and occupation (B&O) tax rate for manufacturers.
The goal is to give manufacturers a level playing field by establishing one
tax rate that applies to everyone. Currently, there’s a standard tax rate that
applies to manufacturers, but certain industries — including timber, aerospace,
aluminum and solar energy — pay lower rates.
“It’s time to let all manufacturers win,” AWB President Kris Johnson told
members of the House Finance Committee during a February bill hearing.
But despite widespread agreement about the need to help manufacturers,
lawmakers ultimately failed to pass legislation to lower the manufacturing B&O
rate. That failure, along with the failure to pass legislation to expand broadband
internet access in rural communities (see pg. 14), rank as two major missed
opportunities from the 2018 session.
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