Vick introduces legislation to reinstate manufacturing tax rate vetoed by governor during special session

Rep. Brandon Vick has introduced legislation to reinstate the lower business and occupation tax rate for manufacturing companies that was initially agreed upon in the 2017 operating budget.

House Bill 2393 would set the tax rate at .2904 for manufacturers, the same preferential tax rate given to aerospace manufacturers, including Boeing.

“The Puget Sound economy is booming, and we want our suburban, rural and coastal counties to be experiencing the same economic prosperity. They face many challenges such as the Growth Management Act, the Hirst decision and other factors as they try to draw in employers to boost their local economy,” said Vick, R-Felida. “We had an opportunity last session to encourage manufacturing companies to locate in the regions where we need family-wage jobs and economic growth, but that ended with the governor’s veto.”

The manufacturing tax rate reduction proposed last session was included in a tax incentive measure, Senate Bill 5977, as part of the overall operating budget package. However, the governor vetoed the manufacturing section of the bill, despite a vote of 83-10 in the House and 33-16 in the Senate.

“The legislation provides an incentive for manufacturers to locate in some of our suburban, rural and coastal areas. We could use more family-wage jobs in these areas, including Clark County,” said Vick. “Recently, the Camas paper and pulp mill announced that they will close part of their operations, eliminating 300 family-wage jobs. The reality is our manufacturing industry is not able to keep up with other sectors with the tax code as it is currently written.”

According to figures from the state Employment Security Department, manufacturing has dropped about 51,000 in 17 years, while jobs in other sectors have grown since 2000.

The bill has been referred to the House Finance Committee.

The 2018 Legislature convened on Jan. 8 and is scheduled to run 60 consecutive days.


Washington State House Republican Communications