SENATE BILL REPORT

SSB 6379

BYSenate Committee on Ways & Means (originally sponsored by Senators Hayner, Halsan, Smith, Rasmussen, Lee, Sellar, Zimmerman, Johnson, Craswell, Barr, Kiskaddon, Bauer, Bender, Hansen, McMullen, Gaspard, Stratton, Garrett and Vognild; by request of Governor)

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

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 28, 1988

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

      Signed by Senators Lee, Chairman; Cantu, Conner, Deccio, McMullen, Saling, Smitherman, Warnke.

Senate Staff:Jack Brummel (786-7428)

                  January 28, 1988

Senate Committee on Ways & Means

Senate Hearing Date(s):February 2, 1988; February 4, 1988; February 5, 1988

Majority Report:  That Substitute Senate Bill No. 6379 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Gary Benson (786-7715)

                  February 8, 1988

AS PASSED SENATE, FEBRUARY 15, 1988

BACKGROUND:

In 1985 a sales and use tax deferral program was started to encourage manufacturing or research and development by firms new the state.  In 1986 a Business and Occupation tax credit program was started to encourage job creation in distressed counties.  Both programs expire in 1988.

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

SUMMARY:

The expiration dates of the new manufacturer sales and use tax deferral program and the Business and Occupation tax credit program are extended to July 1, 1990.  Construction and acquisitions under the tax deferral program must take place prior to December 31, 1990.

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: ECONOMIC DEVELOPMENT & LABOR:  John Anderson, DTED; Chuck Clarke, DCD

Senate Committee - Testified: WAYS & MEANS:  John Andersen, Department of Trade and Economic Development (for); Jim Tussler, Washington State Labor Council; Skeets Johnson, Department of Revenue