Washington Business 2018 AWB Rural Jobs Outlook | Page 8

Tax Incentives/Credits
Washington ranks fifth in the nation in
the business share of state taxes, and
seventh-highest in the nation in the
business share of state and local taxes,
according to Council on State Taxation.
It is imperative that statewide and local
officials resolve the unfair tax burden
on rural industries that will bolster
Washington’s ability to attract, maintain,
and grow economic opportunity in rural
areas, compete with lower-cost states,
and uphold certainty and fairness
for taxpayers.
Incentives from sales and use taxes
have been extremely beneficial to
the establishment and growth of
rural industries in Washington. The
Manufacturing and Equipment (M&E)
tax exemption was instituted to help
Democratic
lawmakers
from the House
and Senate at
AWB’s Rural
Jobs Summit in
Moses Lake.
Pg. 8
small and rural manufacturers make
investments in equipment that would
help spur growth in jobs and revenue. The
most recent review of the M&E exemption
(2008 Manufacturing tax Study) showed
that in a four-year period the exemption
created 58,100 new jobs and added $27.5
billion to the economy. The success of
the M&E exemption is a good example
of how tax preferences, incentives,
and exemptions can benefit the state’s
economy. The Legislature attempted to
give manufacturers a measure of tax relief
last year by approving a reduction in the
business and occupation tax, but this
welcome move was undone by the
governor’s veto.