| VETO MESSAGE ON SSB 5977 |
| July 7, 2017 |
| To the Honorable President and Members, |
| The Senate of the State of Washington |
| Ladies and Gentlemen: |
| I am returning herewith, without my approval as to Sections 201-205 and 601-606, Substitute Senate Bill No. 5977 entitled: |
"AN ACT Relating to revenue." |
| Sections 201 to 205 reduce the general manufacturing business and occupation tax rate and the processing [for] hire rate over four years, beginning in 2019. But at a time when we are asking homeowners to pay more in property taxes to support our children's education, Sections 201 to 205 instead give a tax break to business; and, 21 percent of the revenue from this tax break goes to out-of-state oil companies. This revenue could be used for education, mental health, public safety, and a host of other important public services. |
| Moreover, these tax reductions should be considered in a thoughtful, transparent process that incorporates public input and business accountability. |
| Sections 601 to 606 make sales and use tax exemptions to encourage the conversion of power plants to natural gas or biomass from coal. These sections incentivize a company to do something that it is already required to do by law, giving it an unfair advantage over other Washington companies. |
| For these reasons I have vetoed Sections 201-205 and 601-606 of Substitute Senate Bill No. 5977. |
| With the exception of Sections 201-205 and 601-606, Substitute Senate Bill No. 5977 is approved. |
| Respectfully submitted, |
| Jay Inslee |
| Governor |