5044 AMH REYK PETE 014

SB 5044 - H AMD 644

By Representative Reykdal

ADOPTED 04/12/2011

    On page 1, after line 3, insert the following:

"Sec 1. RCW 43.136.011 and 2006 c 197 s 1 are each amended to read as follows:

    "The legislature recognizes that tax preferences are enacted to meet objectives which are determined to be in the public interest.  However, some tax preferences may not be efficient or equitable tools for the achievement of current public policy objectives.  Given the changing nature of the economy and tax structures of other states, the legislature finds that periodic performance audits of tax preferences are needed to determine if their continued existence will serve the public interest. The legislature further finds that tax preferences that are enacted for economic development purposes must demonstrate growth in full-time family wage jobs with health and retirement benefits.  Given that an opportunity cost exists with each economic choice, it is the intent of the legislature that the overall impact of economic development focused tax preferences benefit the state’s economy."

    Renumber the remaining sections consecutively and correct any internal references accordingly and correct the title.

On page 3, line 19, after “(j)” insert:  "The economic impact of the tax preference compared to the economic impact of government activities funded by the tax for which the tax preference is taken at the same level of expenditure as the tax preference. For purposes of this subsection the economic impact shall be determined using the Washington Input-Output Model as published by the office of financial management;

    (k)”

EFFECT:  Adds benefit to the state's economy and growth in full-time family wage jobs to the intent of economic development tax preferences.  Adds an economic impact analysis to the list of factors to be considered by the Joint Legislative Audit and Review Committee when reviewing tax preferences.

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