Washington Business Fall 2018 | Legislative Review & Vote Record | Page 40

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.