| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Finance Committee | |
HB 1827
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Requiring a tax expenditure report as part of the biennial budget documents.
Sponsors: Representatives Santos, Hasegawa, Campbell, Kenney, McDermott, Hunt, Appleton, Haler, Blake, Hankins, Green, Upthegrove, Williams, Simpson, McIntire, Ormsby and Chase.
Brief Summary of Bill |
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Hearing Date: 2/13/07
Staff: Rick Peterson (786-7150).
Background:
The Department of Revenue (DOR) produces a listing of tax exemptions every four years. The
most recent report was published in 2004 and the next report is due in 2008. According to the
2004 report there are more than 500 tax exemptions. The term "exemption" includes tax
exemptions, exclusions, deductions, credits, deferrals, and preferential rates. These are also
sometimes referred to as "tax preferences." The tax exemptions report describes each exemption,
the year of enactment, the purpose of the exemption (or the DOR's best estimate of the purpose),
an indication of primary beneficiaries, and estimated fiscal impact.
Summary of Bill:
A tax expenditures report is created as part of the Governor's biennial budget documents. The
report will include the listing of tax exemptions prepared by the OR and will categorize each
exemption according to the program or function it supports. The Governor will make a
recommendation on whether each exemption scheduled to terminate in the next biennium should
be allowed to terminate, continue, or continue with modification.
Appropriation: None.
Fiscal Note: Requested on February 10, 2007.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.