Targeted Urban Area Property Tax Exemption.
Cities and towns are authorized to grant a 10-year local property tax exemption for new industrial or manufacturing facilities in designated areas.
Industrial or manufacturing facilities must be at least 10,000 square feet with an improvement value of at least $800,000 and meet certain building use standards by the United States Department of Labor. New construction of industrial or manufacturing facilities must:
Within one year of building occupancy, the facility must create at least 25 family living wage jobs with an average wage of at least $23 per hour and that offers health care benefits.
A property owner seeking the exemption must apply to the city governing authority, pay any applicable fees, and enter into a contract with the city agreeing to terms and conditions of the implementation of the development. An application must be approved by a city governing authority. The contract into which an applicant must enter with the city must be approved by the city governing authority. No application for exemption may be submitted on or after December 31, 2030.
The value of the property tax exemption is provided on the value of eligible improvements and applies only to the city portion of the property tax. A county may, by resolution, allow any property receiving an exemption from city property taxes to also receive an exemption from county property taxes. The exemption does not apply to state levies.
Solar Energy and Silicon Product Manufacturers.
Manufacturers of certain kinds of solar energy systems and their components are subject to a reduced business and occupation (B&O) tax rate of 0.275 percent, compared to the general manufacturing rate of 0.484 percent.
The reduced rate applies to manufacturers and wholesale sellers of: solar energy systems using photovoltaic modules or stirling converters; and components of solar energy systems, including solar grade silicon, silicon solar wafers, silicon solar cells, thin film solar devices, or compound semiconductor solar wafers for use exclusively in solar energy systems.
The reduced B&O tax rate expires July 1, 2027.
Targeted Urban Area Property Tax Exemption.
The requirement under the the property tax exemption for targeted urban areas that new construction of industrial or manufacturing facilities be on land that has no existing building improvements and is zoned for an industrial or manufacturing use as of a specific date, December 31, 2014, is removed.
Solar Energy and Silicon Product Manufacturers.
The reduced B&O tax rate of 0.275 percent for manufacturers and wholesalers of certain kinds of solar energy systems and their components is extended from July 1, 2027, to July 1, 2032.
A tax preference performance statement is included, stating the Legislature's intent to extend by five years the preferential tax rates for manufacturers and wholesalers of specific solar energy material and parts in order to maintain and grow jobs in the solar silicon industry. If a review finds that the number of people employed by the solar silicon industry in Washington is the same or more than in 2019, and that at least 60 percent of employees earn $60,000 a year or more, then the Legislature intends to extend the expiration date of the tax preference.