SENATE BILL REPORT
SB 6379
BYSenators 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 REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, JANUARY 28, 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.
EFFECT OF PROPOSED SUBSTITUTE:
In addition to the above, 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