SENATE BILL REPORT

ESHB 1450

BYHouse Committee on Trade & Economic Development (originally sponsored by Representatives Vekich, Schoon, Fox, Hargrove, Wineberry, B. Williams, Peery, Betrozoff, P. King, Sayan, McLean, May, Fuhrman, Doty, Sutherland, D. Sommers, Walker, Sanders, Rayburn, Moyer, Cooper, O'Brien, Spanel and Day;by request of Governor Gardner)

Extending the excise tax deferral and credit programs for manufacturing and research and development activities.

House Committe on Trade & Economic Development

Rereferred House Committee on Ways & Means/Revenue

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 22, 1988

Majority Report:  Do pass and refer to Committee on Ways & Means.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Conner, Deccio, McMullen, Saling, Warnke, West.

Senate Staff:Jack Brummel (786-7428)

                  February 22, 1988

Senate Committee on Ways & Means

Senate Hearing Date(s):February 29, 1988

Majority Report:  Do pass as amended.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bauer, Bluechel, Cantu, Deccio, Fleming, Gaspard, Hayner, Johnson, Lee, Newhouse, Saling, Smith, Talmadge, Vognild, Warnke, Wojahn, Zimmerman.

Senate Staff:Gary Benson (786-7715)

                  February 29, 1988

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 29, 1988

BACKGROUND:

The Legislature enacted a sales and use tax deferral program in 1985 to encourage the start of new manufacturing or research and development in the state.  In 1986 the Legislature passed a Business and Occupation tax credit program for job creations in distressed counties.  Both programs expire in 1988.  The sales and use tax deferral program for distressed areas expires in 1991.

SUMMARY:

The expiration dates of the sales and use tax deferral program, the distressed area tax deferral program and the Business and Occupation tax credit program are extended to July 1, 1994.  Construction and acquisitions under the tax deferral program must take place prior to December 31, 1994.

SUMMARY OF PROPOSED SENATE AMENDMENT:

Additional Background:  To receive a sales tax deferral, aluminum plants need to obtain either a written concurrence from the union on the decision to apply for a deferral or receive a concurrence waiver from the Department of Trade and Economic Development.

Additional Summary:  The Department of Trade and Economic Development is no longer allowed to waive the need for concurrence from the union when an aluminum plant applies for a sales tax deferral.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: No one