2017 legislative review
HB 2212 / SB 5938 local income tax prohibition ( hjr 4207 / sjr 8204 )
Failed / AWB Supported
In the wake of the City of Olympia ’ s attempt to pass a local income tax and in the shadow of the current City of Seattle ordinance to do the same , legislators are beginning to take up efforts to clarify current preemption against certain types of local taxes that haven ’ t been authorized by the state . Rep . Brandon Vick , R-Vancouver , and Sen . Phil Fortunato , R-Auburn , introduced legislation restating the Legislature ’ s refusal to delegate to a city or county the power to impose a tax on the personal income of individuals or households . They argue the costs associated with local initiatives impose administrative and legal costs on municipalities , regardless of the initiative ’ s constitutional or statutory validity , and for this reason , the matter deserves clarification . Both bills were introduced after regular session and didn ’ t receive a hearing .
SJR 8208 four-year balanced budget
Failed / AWB Supported
Sen . Joe Fain , R-Auburn , brought forward Senate Joint Resolution 8208 , which would have amended the Constitution requiring the Legislature to enact a four-year balanced budget . In 2012 , the Legislature enacted a statutory four-year balanced budget provision . This provision requires the Legislature to leave a positive projected ending fund balance in the state General Fund over a four-year period . It has been an effective tool for reducing fluctuations in state budgeting , minimizing the use of short-term fixes , and reducing the number of unfunded future liabilities . However , because this provision is merely in state law , and not in the state Constitution , there are a number of ways to work around it . SJR 8208 would have strengthened the effectiveness of the law , and built off of last year ’ s effort by the late Sen . Andy Hill , R-Redmond , to do the same . AWB supports this approach and looks forward to working on it again next year .
ESHB 1296 annual tax incentives reports and surveys
Passed / AWB Supported
Engrossed Substitute House Bill 1296 , sponsored by Rep . Terry Nealey , R-Dayton , builds off last session ’ s success eliminating the 100 percent penalty for late surveys and reports . Over the last 20 years , the Legislature has required taxpayers to file an annual survey or report in order to qualify for a variety of new economic development related tax preferences . There are currently more than thirty economic development-related tax preferences that require one of these filings . Like last year ’ s bill , ESHB 1296 puts into place one of the AWB Tax and Fiscal Policy Council ’ s legislative objectives by consolidating the annual reporting requirements for tax preferences by replacing the Annual Tax Incentive Report with the Annual Tax Performance Report and repealing the Annual Tax Incentive Survey . ESHB 1296 garnered near unanimous consent in both the House and Senate .
Rep . Terry Nealey , R-Dayton , ranking minority member of the House Transportation Committee and assistant ranking minority member of the House Finance Committee .
HB 2005 administration of general business licenses
Passed / AWB Supported
Rep . Kristine Lytton , D-Anacortes , was the sponsor and leading advocate for HB 2005 which improves the business climate in Washington by consolidating and simplifying the administration of
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