Washington Business Fall 2018 | Legislative Review & Vote Record

2018 legislative review E2SHB 1054 tobacco & vapor products Failed/AWB Opposed AWB opposed Engrossed Second Substitute House Bill 1054, sponsored by Rep. Paul Harris, R-Vancouver, increasing the lawful age for purchase of tobacco and vapor products to 21. There was no provision to require tax compacts with federally recog nized tribes to set a similar age requirement to keep a level playing field. This legislation passed the House 63-35, but failed to advance in the Senate. SB 6481 manufacturing facilities Rep. Laurie Jinkins, D-Tacoma, chairs the House Judiciary Committee. SHB 2992 rural manufacturing Failed/AWB Opposed Sponsored by Rep. Mike Chapman, D-Port Angeles, this bill proposed a phase-in of a lower manufacturing business and occupation tax rate, but only for businesses in 30 of 39 counties. AWB expressed a desire to work with the sponsor to broaden the eligible areas to include the entire state. Manufacturing job loss is occurring in both rural and urban areas and excluding some counties from this relief would create an unlevel playing field. The bill did not pass out of the House. 3SHB 1904 data tax Failed/AWB Opposed Rep. Norma Smith, R-Clinton, introduced Third Substitute House Bill 1904 in 2017 to impose a new business and occupation tax on the sale of a Washington resident’s personal information. The leg islation was an attempt to illuminate how many businesses buy and sell personal data and what the contribution from data sales means to Washington’s economy. In 2018, the bill was reintroduced without the tax. Instead, 38 association of washington business the new bill required that businesses with more than $100,000 in gross revenue from sales of personal information register with the Department of Revenue and provide “informational returns” detailing the t ype of information collected and the sources and methods for the collection. Inaccurate or incomplete filings would result in a $5,000 fine. The bill passed out of the House Technology & Economic Development Committee but died in the House Appropriations Committee. ESSB 5513 tax expenditure budget Failed/AWB Opposed Sen. David Frockt, D-Seattle, proposed this bill which would have required lawmakers to adopt a “tax expenditure budget” every biennium. In it, every state tax preference would be up for reauthorization and expire if not readopted. AWB opposed the bill because of the great uncertainty it would create for tax policy. The bill was amended before leaving committee to focus on increasing the frequency of updates to the Department of Revenue’s existing tax exemption report and listing tax preferences with budget documents. It passed the Senate 47-0 but died in the House. Failed/AWB Supported AWB supported Senate Bill 6481, sponsored by Sen. Sharon Brown, R-Kennewick, which would have expanded an existing pilot program deferring sales tax on construction costs of new or expanded manufacturing faci l it ies. The defer red t a xes wou ld be repaid into an account dedicated to customized job training. The bill received a hearing, but died in committee. HB 2393 manufacturing tax relief Failed/AWB Supported Sponsored by Rep. Brandon Vick, R-Van- couver, this bill would have reduced the manufacturing business and occupation tax rate to the same rate as the aerospace industry without any phase-in. The bill did not receive a public hearing. SB 6542 manufacturing tax relief Failed/AWB Supported Sponsored by Sen. Michael Baumgartner, R-Spokane, this bill mirrored part II of Senate Bill 5977 — the manufacturing tax rate relief phased in over four years — that the governor vetoed in 2017. The bill did not receive a public hearing.

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